Yet another + update that is really not so much a trade, but a macro idea. Hence, sent to the entire list.
Since the acute bond hysteria a couple weeks ago US Treasury bonds have been easing (interest rates bouncing). That has brought an opportunity for investors, portfolio balancers (that is me in this case) and traders to enter, or in the case of NFTRH+, re-enter TIP (TIP and TLT were highlighted several months ago as a bullish destination).
The reason I like TIP better than TLT right now is because of the introduction of a future inflation issue to the current narrative. If we were to go full on ‘inflation trade’ I don’t think I’d like to hold even TIP and certainly not long-term nominal Treasury bonds. But insofar as one wants portfolio balancing and dividend income, here is the story on TIP.
The daily chart has come down nicely. It can settle further to the 50 day moving averages and even lateral support in the mid 114’s. I don’t want to see it drop below 114 though, from a technical standpoint.
TIP weekly makes that point even clearer as the 114 area is long-term support.
The idea of a position here would be similar to the previous NFTRH+ update on the Emerging Market Income fund (TEI). It is a part of a portfolio with a specific function, which is income (plus the possibility of NAV appreciation as well, as is currently the case with TEI).
We’ll skip the formal buy, sell, stop parameters but generally, one can buy now or wait to see if it drops to the 114’s. Upside selling would be per personal portfolio need and the macro backdrop at such time, and a stop loss if one is desired would be below 114 to suit individual risk tolerance, again assuming one would sell because this could be a part of a balanced portfolio as well.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.
