The Canadian Technician

The Best Information Charts Are Not Like The Others - Today It Is $IRX

Greg Schnell

Greg Schnell

Chief Technical Analyst, Osprey Strategic

I want to bring the $IRX chart up today. When working through chartlists, the charts that show you something out of sync is usually more valuable. 

As an example, when the Municipal Bond $MYI chart broke back in March, just before the yields soared on everything else, something was amiss.  The chart perplexing me lately is my worry wall chart. The $IRX weekly. On this chart, I try to write down major events. I don't think the 3 month T-Bill went to almost zero yesterday on Kate and Williams news of a baby boy. So while this chart in condensed view isn't very helpful, I encourage you to click on the chart to see the wider version. The T-Bill is very sensitive to issues and when the yield plummets (prices rise as people are willing to pay more for safety) someone is looking for a safe place to park money for 90 days.

$IRX 20130723

I don't have the answer, but this creates the question. Why are short term yields collapsing as the $SPX strikes new highs? Something is a miss in the Muni market - Detroit - but that is not news. Detroit was on a plan to get here a long time ago. We saw this coming in March as you can see on the chart below.


Is all I know, my chart senses are tingling. With the Muni chart in trouble, the short term yield chart in trouble, its pay attention time. Here is the current Muni Chart.

MYI 20130723

Good Trading,

Greg Schnell, CMT

Greg Schnell
About the author: , CMT, MFTA is Chief Technical Analyst at Osprey Strategic specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More