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TBT’s Stunning Rally: Is Inflation Igniting a Credit Market Boom?

This is a long and detailed article about trading with the use of VantagePoint AI software. Here’s a summary:

Introduction

The author presents an in-depth analysis of the $TBT (Inverse ETF on Treasury prices) using various technical indicators and machine learning tools provided by VantagePoint AI.

Market Analysis

  • The Fed has promised to raise interest rates 6 more times in the next two years, which is already factored into the bond market.
  • The author believes that a recession may be underway despite the Fed’s promises of a soft landing.
  • $TBT has been up 46.1% over the past year and is highly correlated with Crude Oil prices (81%) and inversely correlated with the S&P 500 Index (-79%).

Technical Indicators

The article uses various technical indicators, including:

  1. VantagePoint A.I. Predictive Blue Line Forecast: This indicator provides a medium-term trend forecast and helps traders identify potential trading opportunities.
  2. Neural Network Indicator: This indicator predicts future strength and/or weakness in the market with a 48-to-72-hour time horizon.
  3. Daily Price Range Prediction: This feature allows traders to anticipate trading ranges and make more informed decisions.

Intermarket Analysis

The article highlights the importance of intermarket analysis, which shows that $TBT is highly correlated with Crude Oil prices and inversely correlated with the S&P 500 Index.

Trading Strategy

The author suggests buying pullbacks in $TBT with good money management and tight stop placement. They also recommend considering $TBT as a hedge against your portfolio or to capitalize on a falling bond market.

Disclaimer

The article includes a disclaimer stating that trading involves a high degree of risk, and it is not prudent or advisable to make trading decisions beyond one’s financial means or capabilities.

Overall, the article presents a comprehensive analysis of $TBT using various technical indicators and machine learning tools. While the author provides some valuable insights, traders should keep in mind the disclaimer and exercise caution when making investment decisions.