Somebody Is Lying

This is the most dangerous chart in the financial markets… [Jeff Clark's Market Minute]( Somebody Is Lying By Jeff Clark, editor, Market Minute This is the most dangerous chart in the financial markets… [(Click here to expand image)]( This is a chart of the iShares 20+ Year Treasury Bond Fund (TLT). It’s an exchange-traded fund that tracks the action in long-term Treasury Bonds. And, it’s about to break down from a descending triangle pattern. Why is that dangerous? Because, as bond prices fall, longer-term interest rates rise. And, rising rates are bad news for stock prices. Please understand, the Federal Reserve Board sets the target for short-term Federal Funds interest rates. That’s the rate over which stock market investors have been obsessing. That’s the rate most folks expect the Fed will cut two or three times this year. Bond investors determine what happens with longer-term interest rates. Recommended Link [The Next Nvidia?]( [image]( Wall Street legend has just uncovered one tiny Maryland company that could become the next Nvidia. Few in the media are talking about this story yet… but in the next 6 months that’s all they’ll talk about. [Go here now for this breaking story.]( -- Based on the look of the above chart, TLT looks set to fall. That means longer-term rates are set to rise. TLT peaked in December near $99 per share. Since then, it has tested support at $91 multiple times. While support held each time, the bounces off of the $91 level have peaked at lower levels. This action has created a descending triangle pattern. This is a bearish pattern that usually breaks down and leads to a sharp move lower. In the case of TLT, a breakdown from here could lead to a drop towards $83. Longer-term interest rates could head back up to where they were last October – above 5%. Stock market investors have ignored this situation, so far. TLT is down 8% since the start of 2024. Yet, the S&P 500 is up more than 10%. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Somebody is lying. Stocks and Treasury bonds typically move in the same direction. So, this sort of divergence is notable. One of these assets is due for an epic reversal. Either Treasury bonds need to rally to catch up with the action in stocks. Or, stocks are going to be pulled down to match the action in bonds. The widely accepted opinion on Wall Street is that bond investors are smarter than stock investors. We’ll soon find out if that’s true. Best regards and good trading, [Signature] Jeff Clark Editor, Market Minute [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](