Actionable news
0
All posts from Actionable news
Actionable news in TLT: ISHARES 20+ YEAR TREASURY BOND ETF,

Trade the Shift Back to Bonds, Gold, Utility Stocks

The yield on the 30-year U.S. bond traded as high as 2.639% on Friday, well above the 200-day simple moving average of 2.5%. The weekly shift in bond yields favors higher yields, with the bond above its key weekly moving average of 2.46%, and with the 200-week simple moving average at 3.057%. The weekly momentum reading has risen above the 80.00 threshold. Remember that when yields rise, the price of the bond declines. This week's value level is 2.659%.

Investors can trade the U.S. Treasury 30-year bond like a stock using the 20+ Year Treasury Bond ETF (TLT) , an exchange-traded fund backed by a basket of U.S. Treasury bonds with maturities of 20 years to 30 years. As a stock-type investment, it never matures, and interest income is converted to periodic dividend payments.

Comex gold futures have been tracking the uptrend of the 200-day simple moving average since Oct. 6, when this average was $1,256.0. Friday's close of $1,276.8 the Troy ounce was above its 200-day average of $1,270.8. The weekly chart is negative but nearly oversold, with gold futures above the 200-week simple moving average of $1,274.1 and below the key weekly moving average of $1,290.7.

Investors can trade gold like a stock using the SPDR Gold Shares ETF (GLD) , which is backed by gold bullion.

The Dow utility average has been claiming its 200-day simple moving average since Oct. 4, when this average was 655.89. It is now 662.60, vs. Friday's close of 661.99. The weekly chart has been upgraded to neutral from negative and shifts to positive this week given a close on Nov. 4 above its key weekly moving average of 664.55. This week's value level is 652.35, with my key level of 670.81 still in play until year end.

Investors seeking the safety of dividends can trade the Utilities Select Sector SPDR Fund (XLU) , which is a basket of 28 utility stocks.

Investors betting that junk bond yields will tighten against U.S. Treasury bonds should consider the SPDR Barclays High Yield Bond ETF (JNK) . Keep in mind that the performance of junk bonds correlates to the stock market, not to the bond market. This ETF set its 2016 high of $36.91 on Oct. 24, then closed last week below...


More