The Ten Year Notes (TY) have been on a tear since the beginning of the year. Fact is, the Ten Years Notes, are up 2.31% for the month and recently hit a weekly high watermark on our Underwater Volume Index chart (see Chart 1 below). This surge to new highs has our Energy Level indicator quickly approaching a strong expansion phase (see Chart 2 below). We highlight this excessive energy surge because it’s likely to slow down. Should this occur, in the near-term, we would expect to lighten if not exit Long positions.
Chart 1: Underwater Volume Index (UVI)
Chart 2: Interest Rate Energy Levels
Point is … keep a close eye on the Interest Rate sector, profit taking may be close at hand. Our systems, of course, always have the last word. Click for Interest Rate signals.
