Click on Chart to EnlargeThis chart is IEF, a 7-10 year bond ETF. Notice is has made new rally highs recently. But there is a great bearish divergence on the MACD indicator. This is a nice bearish set-up.
Click on Chart to EnlargeNow this is TLT which is longer term bonds (20+ years). Notice it has not made new rally highs with IEF. In the past this has often led to bond market weakness over the coming weeks.
I am inclined to stay with the current TBT trade because these charts and technical analysis lead me to believe that bonds will fall from here.
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