The bond top. New phase.

0814tlttl

 

http://stockcharts.com/h-sc/ui?s=TLT&p=D&yr=3&mn=0&dy=0&id=p43052752726&a=312566833

We have previously pointed out the massive top in bonds.  Taht comment sank into the information glut like a sugar cube in the sea.  Usually a letter like that will provoke Barrons or Hulbert to take notice, but like the denizens of the Jersey shore watching TV while the hurricane is bearing down the punditsphere slept through it.  If our readers did here is another alarm clock and hurricane warning.  A 24 month top with head and shoulders characteristics is even now toppling  over on the bond market.  In slow motion.  We are short the TLT with TBT and adding to the position as conditions warrant.

AS is probably obvious a new phase has begun.  It would be fear of the tapir or fear of the departure of Ben’s helicopter — or worry about long hot Summers –any way they’re yellin about it.  Starting with the resurrection from the dead of the metals markets.  Here the chart for silver:

0822slv

 

http://stockcharts.com/h-sc/ui?s=SLV&p=D&yr=0&mn=9&dy=0&id=p15218233755&a=236108789

Here a moderately important trendline is broken and buy signs of strength abound. Gaps, power bars across resistance  lines and what might be a flag.  If so then silver has some distance to go though this is not the ideal position for a flag.  That ought to conclude a run not start it — as if silver cared what we thought.

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