Thursday, July 17, 2014

Bonds Update:TIP>TLT,LQD>HYG

Inflation protected treasuries (TIP) are in a  better technical state than 20+ year Treasuries(TLT) and Investment Grade bonds (LQD) which are in a far better position than junk bonds (sorry...high yield) (HYG).

TIP(bullish):As long as it stays above 113,5 it is bullish. 2 possible bullish scenarios.1 Scenario(Blue) TIP bounces at 114,6 and breaks out towards 118-118,5. 2 Scenario (Grey) TIP moves towards 113,5 where it bounces and possibly start moving towards 118-118,5

TLT(neutral-bullish): Neutral between 110,5 and 114.Above 114 bullish.Same 2 scenarios like TIP. 1)TLT bounces at 112,4 and breaks up. 2)TLT moves towards 110,5 and then continues its ascend.  

LQD(Neutral): Today or tomorrow is a make it or break it day for LQD.If it manages to break 119 it will probably move towards 120(blue).If it breaks 118,5 then it will move towards 118(grey).

HYG(neutral-bearish):HYG is moving towards 93,9 where it will probably bounce towards 94,5 (or even 95).HYG seems like forming a Head and Shoulders pattern with target at 92,5 and then 91,5(blue) (or even 90 (black)).

So tough times for stocks are coming?