While I don't understand the underlying upside drivers of the equity indices atop a 17% up-move since Nov. 8, I have much more conviction about the bond market -- it ended a 35-year bull market last July and is in the budding stages of a new, generational bear market -- not to mention a new bull market in YIELD (higher rates).
The fact that TBT held right at its fault zone on Tuesday (in the vicinity of 38.50/20) and turned up so violently on Wednesday tells me that the entire digestion pattern off of the Feb. 15 high at 42.98 ended at Tuesday's low of 38.45 and that TBT has spiked into a new up-leg that points to 45-46.
That's why I'm entering an initial new long position into Wednesday's strength, placing a stop beneath Tuesday's low.
