Jesse Livermore might say, time to go fishing….. Darvas would call it a market for the birds. O’Neil would stay away, as I suspect would Minervini. And the perspicacious and man of few tweets, David Ryan, said on August 24:
Blog Post: Day 2 of $QQQ short term down-trend; 23 US new highs and 157 lows, most since May 2nd; long treasury bonds in steep decline as interest rates climb, see $TLT; why interest rates move inversely to bonds prices explained
The Wall Street saying is that interest rates move inversely to bond prices. This is like when a stock price declines the dividend yield rises. For example, a stock that pays $4 per year would have a yield =4%%, if the stock’s price were $100 (4/100=4%). If the dividend remains the same and the stock price falls to $50, the yield would climb to 8% (4/50=8%). So it is with bonds which typically have a fixed interest rate/dividend. Falling bond prices = higher interest rates. TLT gapped down on Thursday.
Blog Post: Day 1 of new $QQQ short term down-trend; IBD calls Market in Correction; 63 US new highs and 63 lows; cash is king, hiding in $TBIL, see its bizarre daily chart
I am concerned that the put/call ratio is only .91. There is not enough fear in this market to turn it around. The chart of QQQ is looking ominous. Short term support has not held. I am mainly in cash with some $TBIL in my trading account.
TBIL is an ETF that invests in short term treasuries. It pays a dividend monthly, which explains this unique daily chart. (TBIL is reduced by each dividend payment.) I enjoy seeing the dividend payment credited to my account each month. Its yield is a little over 5%. Check it out.
