Fairlead Strategies Idea Generator
iShares 7-10 Year Treasury Bond ETF (IEF) & Updates (CE, PPH, SH)
We are removing Celanese (CE) and the VanEck Pharmaceutical ETF (PPH) from our open ideas since they logged two closes below our stop-loss levels. We are also tightening our recommended stop-loss level to $15.31 for the ProShares Short S&P 500 (SH).
With global markets in risk-off mode, and Treasury yields likely to remain stalled, we recommend a short-term position in the iShares 7-10 Year Treasury Bond ETF (IEF):
IEF is reacting positively to signs of downside exhaustion per the DeMARK Indicators®, which are enhancing intermediate-term oversold conditions near long-term support from 2018. The weekly MACD histogram shows loss of downside momentum over the past few weeks in a positive development.
IEF has improved short-term momentum in addition to a positive divergence in the daily stochastic oscillator (not shown), which has turned higher from oversold levels, supporting a continuation of the relief rally in the near term.
Initial resistance near the 50-day (~10-week) moving average (~$106) can be used as a conservative upside target, and two consecutive closes below the most recent low near $101 would act as a stop-loss.
iShares 7-10 Year Treasury Bond ETF (IEF, $103.30):
Target: $106
Stop-Loss: $101