US bonds (TLT- US long bond chart below) look to be forming a small triangle on the weekly chart. Seasonality is strong for bonds until the end of October. If you hold US bonds, stick with them but be aware that a breakdown from the triangle would be bearish – especially if that occurs near the end of their seasonal period of strength coming into winter.
Canadian long bonds per the XLB chart below show consolidation just under 26.75. The ETF – which does a fine job of representing the Canadian long bond picture – suggests an overbought scenario. Its trading about 10% over its 200 day MA, which is a rule of thumb point I use to spot overbought situations – something a reader was enquiring about recently. Again, an eye should be kept on this ETF and bonds in your portfolio as we approach the end of October – or if we see breakdown from the current consolidation pattern.
ValueTrend Performance numbers: fresh off the grill
Follow this link to see the August Equity Platform performance numbers.