BONDS: The real meal bubble $TLT $TBT $ZB_F $GLD
Notice the pretty symmetry on the TLT weekly chart with its screaming head & shoulders. Notice that the MACD has crossed over again too. Nice blow off spike which capped the ultimate bond run. The TLT daily chart has a lot of TA on it. Take note of the measuring halfway gap which was perfect - including the breakout gap below and the exhaustion gap at the end of the move in purple arrows which culminated in a miniature head and shoulders at the top. Also, check out the smaller, recent head and shoulders. Some seriously nice reverse symmetry on the way back down.
Think of all these folks (and nations) hiding in bonds, clipping coupons and foolishly thinking their money is “safe”. The most important thing is not the return on principal, but rather the RETURN OF PRINCIPAL. We laugh at the thought of investing in a 30 year long bond paying decades low interest. Bonds which are denominated in a devaluing fiat, backed by mountains of debt and loads of empty promises. US bonds are totally unattractive without the immediate threat of a global financial depression - which was their only hope of going up from these lofty levels.
Gold won’t peak until bonds are close to bottoming and bonds have no where to go but much further down. Gold will go up with interest rates. Bonds are the true bubble; gold is the future bubble down the road when interest rates are well into the double digits. Make sure you are prepared.
