Treasury Bonds Yields Nearing 52-Week Highs as Comex Gold Falls Below 50-Day Moving Average

New York (Mar 13)  Last week, was a week without new highs for the five major equity averages, as the focus shifts to the "Ides of March" as the Federal Reserve sets to raise the federal funds rate to 1.00%. The sideways action left Dow transports and Russell 2000 with negative weekly charts just eight trading days after setting all-time intraday highs on March 1.

The yield on the 30-year U.S. Treasury bond rose to 3.200% on Friday, versus its 52-week high of 3.215% set on Dec. 12. My semiannual value level is 3.302% with a monthly pivot at 3.142 and quarterly risky level of 2.790%.

Comex gold has fallen from its 200-day simple moving average of $1,262.7 on Feb. 27 to as low as $1,194.5 on Friday, which was a test of my quarterly pivot of $1,196.0. My monthly value level is $1,185.4 with annual risky levels at $1,660.1 and $1,674.1.

Dow utilities traded as low as 683.44 on March 9. Below are the 50-day and 200-day simple moving averages, which are poised for a potential "golden cross." A "golden cross" is a bullish signal that occurs when the 50-day rises above the 200-day. My quarterly value level is 640.73 with an annual pivot of 679.56 and semiannual risky level of 732.56. Utilities are dividend-rich and could get a boost from infrastructure spending.

The SPDR Barclays High Yield Bond ETF  (JNK) provides a warning of wider corporate bond spreads versus U.S. Treasuries, given a Federal Reserve tightening of monetary policy. This is a warning that the Trump rally faces the headwinds of the "Ides of March."

Source: TheStreet