Equities for rising rates were not able to hold above former highs and are now stuck below overhead supply. Do they want to tell us something? pic.twitter.com/mYHzcGVzgu
— Alfonso Depablos (@AlfCharts) June 28, 2022
Today’s Chart of the Day was shared by Alfonso Depablos (@AlfCharts). It’s a daily candlestick chart of the US 10-year Treasury Yield ($TNX), along with the Equities for Rising Rates ETF, ($EQRR). This ETF provides exposure to interest-rate-sensitive stocks. Over 50% of its weighting is in Energy & Financial stocks like Valero, M&T Bank, Marathon Petroleum, Raymond James, Exxon Mobil, and JP Morgan. Alfonso points out that this ETF has already broken down, while the 10-year yield continues to test a key level. As you can see, the two have tracked each other pretty closely in recent years. Will yields follow these rate-sensitive stocks lower?
