January 16, 2025

By Nigam Arora & Dr. Natasha Arora

To gain an edge, this is what you need to know today.

Bonds Are The Leading Indicator

Please click here for a chart of 20+ year Treasury bond ETF (TLT).

Note the following:

• On January 10th, we wrote in the Morning Capsule:

Bonds are now very oversold.  For this reason, bonds may see a technical bounce.  The bounce in bonds means yields pulling back.  If yields pull back, the stock market will rally.

• The chart shows that bond ETF TLT previously touched the top band of the support zone.
• The chart shows that bonds rallied on cooler core CPI.