Steven Mylonas
Bottomcatcher.com
YTD the iShares 20 Year Treasury Bond (TLT) is up 21.55% (as of Aug 13, 2020), YTD the tech-heavy Nasdaq 100 is up 23.80%. During troubled times and low-interest rates, bond-buying would be considered a safer investment vehicle, and many seasoned traders hopped on board during the coronavirus pandemic, and are now sitting pretty.
TLT broke out of its multi-year rising channel (A) during the early part of March this year (B) as the broad markets began their decline. Could this breakout be the precursor for the start of an uptrend? Perhaps, what with a steady decline in interest rates and low U.S government yields, adding TLT to your portfolio might not be such a bad idea. Observe and monitor price behaviour at (1 & 2), if TLT manages to avoid falling back into the multi-year rising channel, it could indicate further buying pressure.
Bottomcatcher has made every attempt to ensure the accuracy and reliability of the information provided in this report. However, the information is provided without a warranty of any kind. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Bottomcatcher.
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