Flash Alert: Bond Yields Break Below Key Support. Plus, a New Weekender Rainy Day Trade

Surprising news from the U.S. Treasury Rallied Bonds.

The bond market responded quite positively to news that the U.S. Treasury is scaling back its debt issuance for “several quarters.” The net effect is that there will be fewer bonds to trade. Thus, the drop in yields.

That sets up an interesting climax to this week when the January employment data is released. This morning’s ADP data showed unexpected strength in hiring in the private sector, while the previously released jobs opening numbers (JOLTS) came in weaker than expected.

Still, the U.S. Ten Year Treasury has broken below the key 4.5% yield, and its 50-day moving average this morning, which is a bullish development until proven otherwise.

A beneficiary of the decline in rates has been the Real Estate Investment Trust sector (REITs) where we’ve been nibbling at the Weekender Portfolio. This morning I’m adding a new REIT to the our very long term holdings Rainy Day Portfolio.

For its part, the New York Stock Exchange Advance Decline line (NYAD) continues to chug along, mostly ignoring the volatility of the technology sector.

For a quick and easy summary of our current Weekender positions, visit the EZ Vue Weekender Page.

Thanks to everyone for your ongoing support. I really appreciate it.

Thanks also to all the current Buy Me a Coffee members and supporters. Special shout out to new members who now have access to the Sector Selector ETF Service, included, at no extra charge with your Buy Me a Coffee membership. Two new trades were posted yesterday.

For active trading, short term trading strategies, check out the Smart Money Passport.

For large potential profits with longer term holding periods in stocks check out the Smart Money Passport Weekender Portfolio.

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– will get you started along the right path.

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