Posted by: stockscooter | June 5, 2012

Here’s an Investment TIP

Treasury Inflation Protected Securities (TIPS) have been on a tear.  Is it time for them to give-up the ghost?  The chart shows their rampage since their deep bottom in 2008.  The main point in this chart is divergence.  Since October 2010,a triple divergence has been created.  As noted by the black line on the indicator, each mountain on the histogram is lower, while simultaneously the price chart is achieving higher highs.  The correction could be between 14 and 24%, which is a very healthy drop.  Since these securities are at a major premium to CPI numbers, it’s natural to see that erased.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

%d bloggers like this: