The Trader Harbor
  • Business
  • Politics
  • World News
  • Stocks
  • Business
  • Politics
  • World News
  • Stocks

The Trader Harbor

Stocks

Plunge in Treasury Yields Triggers Gap-Surge in Home Builders

by admin November 28, 2024
November 28, 2024
Plunge in Treasury Yields Triggers Gap-Surge in Home Builders

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’s report analyzes the yield, the TBond ETF (IEF) and ITB.  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). Homebuilders held out for interest rates and got their catalyst on Monday. The 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.

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.

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).

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 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. ITB gapped up and surged 5% on Monday. 

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. 

Click here to join and get two bonus reports!

////////////////////////////////////////////////////////////

0
FacebookTwitterGoogle +Pinterest
previous post
Here’s Why the Small Cap IWM Will Soar Nearly 70% by the End of 2025
next post
Reddit targets international users for ad growth, teases bolstered search feature

Related Posts

Nuclear Power Trio: OKLO, SMR, and CCJ in...

May 30, 2025

What’s Wrong With This SPX Breakout?

October 10, 2024

Using RRG To Find Best Three Stocks inside...

October 19, 2024

Equities Hang on to Weaker “Go” Trend as...

November 5, 2024

Why the S&P 500 Going Sideways is the...

September 6, 2024

Small Caps Poised to Soar: Is Now The...

August 2, 2024

Investing in the Age of Tariffs: Safeguard Your...

January 29, 2025

S&P 500 Earnings 2024 Q3: Still Overvalued

January 13, 2025

Master the 18/40 MA Strategy: Spot Trend, Momentum...

May 4, 2025

What’s The Outlook For December AND For 2025?

December 7, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • The Real Drivers of This Market: AI, Semis & Robotics

      July 21, 2025
    • What Musk’s fracture with Trump means for GOP’s future: ‘Beating heart of the Republican Party’

      July 21, 2025
    • Trump’s housing chief rips Powell for blowing millions on Fed facelift during housing crisis he perpetuates

      July 21, 2025
    • Trump celebrates 6 months back in office: US ‘totally revived’ after being ‘DEAD’ under Biden

      July 21, 2025
    • Biden admin spent hefty sum of US tax dollars to upgrade embassy swimming pools in Iraq, Russia

      July 21, 2025
    • Trump heads to Scotland, continues ironing out trade deals after notching six months back in office

      July 21, 2025

    Categories

    • Business (1,299)
    • Politics (4,040)
    • Stocks (1,535)
    • Uncategorized (45)
    • World News (1,292)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheTraderHarbor, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 thetraderharbor.com | All Rights Reserved