From the desk of Steve Strazza @sstrazza
For the first time in my career, I’m buying bonds.
It has less to do with positioning defensively and more to do with making a call on lower interest rates.
But what it really comes down to, more than anything, is the chart pattern.
Bond funds are completing bearish-to-bullish reversals for the first time in years.
This is the same exact pattern we’ve gone back to time and again this cycle… and every cycle, really.
Rounding bottoms are some of the most reliable patterns we have as technicians.
And we’re seeing them across the board in bond funds right now.
Let’s dive in and talk about some of them.