The bond short has been a tough one in 2014, as you can see the TLT rally on the chart, below.
Currently, Treasuries continue to struggle to hod their lower support trendline, though have yet to cleanly breakdown.
I have quickly stopped out of a few attempts a bond short this year for small losses, not yet willing to hit it with size until I see more evidence of an actual bond market rollover.
The first two quarters of this year are in the book, and if bond bears are going to pounce in the back half then this opportunity for a breakdown should not be lost on the vigilantes.
I now view a close under $110 as an initial sign of a change in trend.
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