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.

What Killed the Middle Class?

Today real incomes of the middle class are 5% lower than they were in 1970 and 12.4% lower than in 2000… when they peaked! How could this be?

In our new infographic What Killed the Middle Class?, we take a look at some shocking numbers to show how bad it’s become and what has been fueling this middle-class revolt.

 

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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.