One area where we're actually seeing a trend change in today's market is with bonds. Our bond momentum indicator has recently rolled over from overbought levels giving a traditional sell signal (see chart below). Personally, I had expected to see the yield on the 30-Year Treasury fall below 2% before bonds peaked. While this may still occur and the bond momentum indicator could reverse back up, for the time being, this kind of action in the bond momentum indicator (rolling over from extremely overbought) is generally a confirmation that the bottom is already in for yields.
Mark Dodson, CFA
If you are a subscriber to HaysAdvisory.com, click here to read our recent reports. If you would like to learn more about the research and commentary offered by Hays Advisory, click here.
Please see important disclosures at the bottom of this page.