Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

Plunge in Treasury Yields Triggers Gap-Surge in Home Builders

by November 27, 2024
November 27, 2024
Plunge in Treasury Yields Triggers Gap-Surge in Home Builders

The 10-yr Treasury Yield reversed its upswing with a sharp decline and the Home Construction ETF (ITB) reacted with a noteworthy gap-surge. Today’s report analyzes the yield, the TBond ETF (IEF) and ITB.  The 10-yr Treasury Yield plunged as Treasury bonds surged on the heels of a new nomination for Treasury secretary. These moves lifted small-caps, banks and homebuilders. Banks have been leading for some time and small-caps started their move last week (as noted in Chart Trader last week). Homebuilders held out for interest rates and got their catalyst on Monday. The only concern here is that the move in Treasuries is a knee-jerk reaction. Follow through would confirm the validity of these short-term reversals.

The first chart shows the 10-yr Treasury Yield ($TNX) in the top window and the 7-10 Yr Treasury Bond ETF (IEF). $TNX is the yield multiplied by 10. I used this version because it is updated in real time, as opposed to end of day. $TNX and IEF are mirror images. The 10yr Yield is within a large falling channel and the 7-10Yr T-Bond ETF is within a large rising channel. The yield falls when the bond price rises..

These two caught my eye because they reversed the swings within their respective channels. $TNX fell sharply to reverse the upswing, which extended from mid September to mid October. This means the short-term trend (down) is now aligned with the long-term trend (down). On the flip-side, IEF surged and reversed its downswing. This means the short-term trend (up) is now aligned with the long-term trend (up).

Small-caps reacted to the plunge in yields with a surge the last three days. Actually, small-caps started moving higher before the 10-yr Treasury Yield surged and we noted this in the Chart Trader report on Thursday before the open. Moving to this week, the Home Construction ETF (ITB) also caught a strong bid as the 10-yr Treasury Yield fell on Monday. ITB gapped up and surged 5% on Monday. 

Next we will analyze the charts for ITB and five home builder stocks. This members-only report covers the long-term trends, medium chart setups and the recent momentum thrusts. 

Click here to join and get two bonus reports!

////////////////////////////////////////////////////////////

0
FacebookTwitterGoogle +Pinterest
previous post
How to Port Health Insurance Policies Online in India?
next post
China’s secret weapon in the space race is already hurting us

You may also like

Stocks at a Crossroad

August 26, 2022

Silver Cross Index is Topping on Broad Market...

January 5, 2024

Three Stocks With Post-Earnings Upside Potential

May 2, 2025

Six Bullish Signs That a Short-Term Bottom May...

March 5, 2023

DP Trading Room: NVDA Going Into Earnings –...

August 26, 2024

The Wisdom of Jesse Livermore, Part 8

June 21, 2023

Can Gold and Silver Hold Recent Gains?

August 1, 2022

Stocks In Focus This Week: Palantir, Uber, and...

May 2, 2025

Will XRT (Retail) Sink or Soar? Here’s What...

August 16, 2024

Wage Inflation: The Stats and the Underlying Implications

September 20, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Forex Day Trading Strategies for Busy Professionals and Performance-Driven Traders

      July 4, 2025
    • President Trump to honor Iran strike flight team at the White House

      July 4, 2025
    • Propel Finance secures £1.5bn to boost UK SME lending

      July 4, 2025
    • UK Finance urges bold reforms in Mansion House 2025 submission to unlock UK growth potential

      July 4, 2025
    • UK faces critical automotive job shortages by 2050, new research reveals

      July 4, 2025
    • Why Leadership Belongs to Everyone in Your Business

      July 4, 2025

    Categories

    • Business (8,389)
    • Investing (2,102)
    • Politics (15,943)
    • Stocks (3,189)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved