If This Gives Way, Bonds Could Fall Another 15%
Chris Kimble | Nov 18, 2016 10:05AM ET
Do you know what was one of the best things to do on the 4th of July this year? If you owned government bonds, it was a great time to sell them. If you were open to it, it was an even better time to short them.
The chart below looks at iShares 20+ Year Treasury Bond (NASDAQ:TLT) over the past 15 years and applies a 16-week performance table to the chart-
Over the past 16 weeks, TLT has declined nearly 14% at (1), givng back some really sweet gains TLT had made in the first half of the year. TLT remains inside of its 13-year rising channel (2), despite the large decline over the past few months.
If support breaks at (3), TLT could fall another 15% before it hits rising support channel (2).
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