US Treasury Bond ETF ($IEF)
Hey everyone,
We’ve seen a bit of a bounce lately in the market, but don’t be fooled, we are in a bear market.
I’m still not sold on stocks right now.
That’s why this week’s trade recommendation is the US Treasury Bond ETF ($IEF).
We’ve talked about IEF before.
A few months ago, we got into IEF with a target of $123.
Since then, we’ve seen healthy consolidation in IEF.
And because we’re seeing a consolidation, this could go either way.
If IEF goes up, we’re in long above $123 with an exit of $138.
Now, this is a smart play because it’s hedging your portfolio against a drop in stocks.
Here’s the thing…
The trend is still up for bonds, so if IEF breaks out to the upside, that means we can expect a correlated drop in stocks.
And with the current trend, I’m liking bonds over cash.
Til next time,
JC Parets
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