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Friday, February 9, 2018

Bonds Rotation


One of the most interesting things to see this year will be if the bond market breaks down and we see rates shoot up faster than expected.

S&P 500 v Junk daily. While SPX rallied in 2017, junk bonds did not. Now it seems that stocks are re-connecting with junk bonds as the prospect of a potential four rate hikes in 2018 start to become a reality.


JNK weekly back below the kumo.


TLT weekly the long term trend line has broken.


 TNX mth the long term trend has broken.


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