Old readers would remember that we went bearish on bonds earlier this year when the majority of the experts were convinced that the rate hike cycle was behind us.
One big change models picked up is its exit from BOND position TLT. It would be interesting to see how it plays out. The mainstream narrative is that FED is done with the rate hikes, but then why are markets not bidding TLT?
Now models picking up early signs of bottoming in the bond markets and exhaustion in the US dollar.
Both of these, if confirmed should bode well for Risk-On Assets.
Coming to the model positions, there have been 4 exits and 2 entries
NOTE: Trend formation is in the early stages, so it would make sense to scale into positions as you get confirmations.
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