Interest rates bottom, TBF moves higher

Look at this chart. It shows the ProShares Short 20+ Year Treasury ETF (NYSE: TBF). As an inverse fund, TBF goes higher when interest rates go higher and bond prices go lower.

You can see how TBF (and interest rates) created a V-shaped bottom last October.

Soon after, the Relative Strength Index (RSI) began showing bullish divergence – a signal for higher interest rates (and TBF prices).

As TBF traded sideways it seemed $31 was holding as support. We alerted Boom & Bust subscribers of this bottoming behavior and recommended moving stop loss orders to $30.50.

This move reduced our risk, but also gave time and room for TBF to go higher… which is what we’re seeing now.

How CEOs are Earning 335x MORE Than Their Own Employees

What if I told you up to 95% of companies currently trading on the stock market today are essentially stealing money right out of your pocket!? This includes some of the biggest names in the corporate world… companies that trade millions of shares a day, who you might be invested in right now!

Discover just how far the deceit on Wall Street goes and how you can still uncover many lucrative opportunities in the stock market today, in our new infographic: How CEOs are Earning 335x MORE Than Their Own Employees

LEARN MORE
Categories: Economy

About Author

Adam O’Dell has one purpose in mind: to find and bring to subscribers investment opportunities that return the maximum profit with the minimum risk. Adam has worked as a Prop Trader for a spot Forex firm. While there, he learned the fundamentals of trading in the world’s largest market. He excelled at trading the volatile currency markets by seeking out low-risk entry points for trades with high profit potential. An MBA graduate and Affiliate Member of the Market Technicians Association, Adam is a lifelong student of the markets. He is editor of our hugely successful trading service, Cycle 9 Alert.