Loading ...TLT:USO and TLT:$WTIC … very interesting
To me, this says bonds are about to breakout against oil in a really big way. This means bonds higher (rates lower) and oil lower (deflation). Not sure exactly how this bodes for metals/miners. Last time this chart broke out was in 2014, metals/miners were still dropping. Definitely a chart we should continue to watch.
what does this mean?
It’s a great question. To me it says bonds are about ready to breakout against oil, in a really big way! This could mean run to safety and deflation. It also means rates lower will win out over oil higher, which doesn’t bode well for the economy IMO. Not sure what this means for gold and miners currently. The last time it broke out was 2014, when metals/miners were still dropping. This sure looks convincing though.