You should have been stopped out of TMF today when it hit my recommended protective sell-stop at $17.95.
That stinks. But, you should have raised your stop earlier this week, limiting your loss to close to break-even. After all, that’s what stops are for, to limit the risk. Remain patient but stand aside for now. There is still a large amount of speculative selling activity in U.S. 10-Year-Note futures – reaching its most oversold level since early 2005.
This tells me that a short-term bounce in U.S. bond prices could still be coming – accompanied by lower yields. If I see a short-covering rally unfolding, I will be sure to re-recommend TMF again.
The Dow finally broke 20,000 today, but I still expect a near-term correction for the overbought stock market. In fact, Dow 20,000 may prove to be a short-term psychological top. The AI models still have the Dow heading lower into the March/April timeframe. So continue to hold DXD.
Stay tuned …
Larry
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