Trade Alert For Both Models
This morning we added 2% of the portfolio value to our current iShares 20-Year Treasury bond ETF (TLT) holdings to all models. After turning on a sell signal a few days ago, it flipped and is back on a buy signal, albeit from higher than preferred levels. More importantly, bonds are breaking above a resistance level that has capped the market thrice since December. Weaker JOLTS, ADP and ISM, appear to be the main factor for the recent uptick in bonds.
We are not yet at full target weights for our bond holdings, so while we are lowering our current cost basis, we hope to get one more pullback in bonds to bring our duration to target and increase our bond holdings to full allocations.
Both Equity And ETF Models
- Add 2% to the iShares 20-Year Treasury Bond ETF (TLT)
Lance Roberts is a Chief Portfolio Strategist/Economist for RIA Advisors. He is also the host of “The Lance Roberts Podcast” and Chief Editor of the “Real Investment Advice” website and author of “Real Investment Daily” blog and “Real Investment Report“. Follow Lance on Facebook, Twitter, Linked-In and YouTube
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