There have been some major trend changes recently and it looks as if more investment is to follow. The real question is, Are you ready to take advantage of it?
This has been an exciting journey to say the least with the stocks and metals bull market and the declining dollar. But it seems that their time is up, or at least for a couple of weeks. Traders and investors will slowly withdraw money on the table to lock in profits or cut losses and re-evaluate the general market conditions before stepping back up to the plate and taking another swing.
Below are a few charts and some possible money to trade ideas in the coming weeks.
TBT 20 + Treasury Note Inverse Fund
This fund moves inverse to the price of 20yr T.N’s also known as bonds. Looking at the chart you can see the recent reversal that took place. We had a great entry point shortly after this reversal where I was using my setup with a low risk strategy.
Falling bond prices are considered to have a negative effect on stocks because it implies that interest rates may begin to rise, which means more investors will pull money out of stocks and put the money into a safe interest earning investment. You will usually see the bonds change direction before the shares. That said, the table below is an inverse fund, so when this bond fund goes up, it actually shows bond yields fall. I will admit these inverse funds really throw my brains for a loop and I prefer the good old days, long buying and short selling as simple and clean…read more…..
