Rates Bouncing Off Potential Double Bottom
Interest rates over the past 10 years remind me of the picture above; they keep bouncing and creating a series of lower highs. Is the trend of lower highs about to end?
Below looks at the yield on the 10-year note, over the past decade.
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Yields on the 10-year note hit all-time lows back in 2012. Did a double bottom in yields take place at (1) back in July? Humbly feel it's too soon to tell.
We did long yields/short bonds (bought TBF) at (1), just in case a key low took place. Since shorting bonds in July, TBF is up nearly as much, as the S&P is for the full year.
Yields broke above 1-year falling resistance and tested the old resistance as new support at (2) and have pushed higher since.
Yields are testing falling resistance right now. Next resistance level that is a huge test for interest rates, comes into play at (3).
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