Kirkpatrick’s Weekly Market Strategist The technical stock market letter published weekly since 1976 JUNE 29, 2018
Intermediate-Term Trend Table
Index Signal
BKX Dn* BOND Up UTY Up
Date
Sig Pr
6/29 103.39 6/22 143 31/32 6/22 648
*Change from last week
Cur Pr
103.39 145 663
long-term u.s. tREASURY bONDS
My doubts evaporated this past week when the long-term bond price rallied on Wednesday. I keep forgetting that the bond market is so much slower than the stock market. Anyway, the action last week suggests that the prices are in an advancing channel, possibly a rising wedge. In any case, the stop should be placed just below the trend line and follow it up until it is broken.
Conclusion: The position is long.
GOLD
In the gold price a small symmetrical or pennant formed last week and broke downward on Wednesday. These patterns are frequently midpoint patterns marking the halfway point of the decline. If we follow that logic, the projection for the bond future is 1220-1230. I’m not confident with this projection as I am with all price projections because most of the time they are inaccurate. Nevertheless, the evidence suggests a continuation of the price decline that began last week.
Conclusion: The position is short.
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