{"id":12710,"date":"2024-11-28T00:01:40","date_gmt":"2024-11-28T00:01:40","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2024\/11\/28\/plunge-in-treasury-yields-triggers-gap-surge-in-home-builders\/"},"modified":"2024-11-28T00:01:40","modified_gmt":"2024-11-28T00:01:40","slug":"plunge-in-treasury-yields-triggers-gap-surge-in-home-builders","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2024\/11\/28\/plunge-in-treasury-yields-triggers-gap-surge-in-home-builders\/","title":{"rendered":"Plunge in Treasury Yields Triggers Gap-Surge in Home Builders"},"content":{"rendered":"
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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\u2019s report analyzes the yield, the TBond ETF (IEF) and ITB.\u00a0 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<\/a>). Homebuilders held out for interest rates and got their catalyst on Monday.\u00a0The 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.<\/p>\n

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.<\/p>\n

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).<\/p>\n

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<\/a> 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.\u00a0ITB gapped up and surged 5% on Monday.\u00a0<\/p>\n

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.\u00a0<\/p>\n

Click here to join and get two bonus reports!<\/a><\/h4>\n

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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\u2019s report analyzes the yield, the TBond ETF (IEF) and ITB.\u00a0 The 10-yr Treasury Yield plunged as Treasury bonds surged on the heels of a new nomination for Treasury secretary. These moves lifted […]<\/p>\n","protected":false},"author":0,"featured_media":12711,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-12710","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/12710","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=12710"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/12710\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/12711"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=12710"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=12710"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=12710"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}