One trade that has been working in only one direction is that of interest rates. At the start of the year everybody was convinced, at least it seems like everybody was convinced, that rates were going to rise. So far that has been the furthest thing from the truth as yields continue to drop. However, I think the tides are a turning! Lets look at a couple of charts. One being the one year daily and the other being the three year weekly.
The chart below is that of the TBT and what I would like to see is a low volume pullback while the stock puts in a higher low. If this does happen then your free to get a lot more aggressive with the trade as a low risk stop can be put in place. Also, if you look below you see a possible inverse head and shoulders taking place which can be an extremely bullish signal. However, that is all speculation until the stock actually does what I think it will.
Til next time,