On November 25, 2022, many income funds continued to form downtrend channel breakout chart patterns. These bullish patterns suggest institutional investors are bottom feeding in income funds as we close out the worst year for fixed income funds in US history.
Eaton Vance Limited Duration Income Fund $EVV
The $EVV stock chart has confirmed a downtrend channel breakout on November 25, 2022. Interestingly, a bullish One White Soldier candlestick pattern (shown in a red square on the chart below) formed on November 15, 2022, right before the stock chart surged higher.
Invesco Municipal Income Opportunities Trust $OIA
$OIA stock has confirmed a downtrend channel breakout on November 25, 2022, after an explosive move higher that was led off by a Piercing Line candlestick pattern (show in yellow box below). The MACD is incredibly strong and the money flow just went positive.
The fixed income markets have had their worst year in 2022 in the history of bond markets, setting up an opportunity unlike anything in history. Some big institutional investors like Morgan Stanley are moving money into fixed income markets.
As growth in other sectors slows in 2023 from rising interest rates, fixed income markets will be a sweet alternative.