Taper This!

The dreaded taper was supposed to kill stocks.  It was supposed to cause bond prices to fall and interest rates to rise.  It has done nothing of the sort.  Magically both bonds and stocks are being bought these days.  

The ETF  $TLT is a great tool to track the trend of longer duration bonds.  Right now it sits at a multi-year point of resistance.  A break above could imply we are looking at lower interest rates down the road.  Who woulda thunk it?

Seemingly everyone agrees that we are going to see higher interest rates down the road, as central banks unwind their extraordinary stimulus measures.  What is $TLT telling us today?

I think the recent action is telling us the central banks have no intention of leaving the asset purchasing business anytime soon.


Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

More Posts by UPB: View All | Private Twitter Feed: Access Now! (For Diamond Members)

Leave a Reply