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April 11, 2006
Bonds Oversold
The fall in bonds has been huge. TLT declined from 93 to 85 in less than three months and the 10-year T-Note Yield moved above 5%. The trend is clearly down for TLT, but also oversold and ripe for a consolidation or even a bounce. TLT formed an inside day yesterday and this is the spot for bottom pickers and those that like to catch falling knives. A bounce in bonds could also boost the non-tech dominated stock indices (SPX, Dow).
Posted by Arthur B. Hill at April 11, 2006 06:21 AM