Below is the answer to the quiz of yesterday. See quiz chart (here) or scroll down to the next chart below this post.
CLICK ON CHART TO ENLARGE
TIPS gapped higher, breaking the top of its rising channel, looks to have made a “Double Top” and now has traded back down to the bottom of its rising channel. TIPs are impacted by both rates and inflation. Is this decline overdone? Long-Term rates are pressing up against 17-YEAR RESISTANCE right now (see post here) Per the long bond, it has paid to be a bond buyer up against this resistance. Going to be different this time?
