Just because I have an interest on a macro level (interest rates and the dynamics therein) with rates being key to all other markets and because I have an interest in the Financials sector, which has done good work consolidating ‘vs. SPX’ since the initial ‘Trump trade’ up surge, I want to keep an eye on this situation.
We have noted that the contrarian bullish bond play is cooked, done, kaput due to now unsupportive sentiment and CoT alignments. But price will do as it does in the short-term. Here’s the updated daily view of the 10yr yield and a couple of items in line with it, which would stand to gain if long-term interest rates do (all other things, like the yield curve, being equal).
TNX is still in a constructive pattern and XLF and KBE could be forming little Inverted H&S patterns. But as of now, this forward play is a bit iffy.
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