Bonds
Bond Strategy With a Perfect 2024 Track Record Flashes Sell Signal
- TLT fund is overbought, judging by ‘moving-average envelopes’
- Strategy based on momentum is up 33% this year, fell in 2023
The US Treasury building in Washington, DC.
Photographer: Samuel Corum/BloombergThis article is for subscribers only.
A momentum-based technical strategy that has had a 100% winning record in trading long-term Treasuries this year flashed a sell signal Monday.
The sell call at Monday’s open comes after BlackRock Inc.’s $61 billion bond exchange-traded fund tracking Treasuries due in more than 20 years (TLT) surged Friday when a weak job report fueled speculation that the Federal Reserve will cut interest rates aggressively.