The Ishares Core Short-Term US Bond ETF is in a strong uptrend as large players continue to buy short term bonds.
A large amount of money is going into fixed-income exchange-traded funds in the first half of 2017, easily beating 2016’s record inflows. Traders are betting that the Federal Reserve will hike rates before the end of the year. Bond traders are front-running rate hikes in short term bonds in a bet that there will be another rate hike this year and up to three in 2018.
The Ishares Core Short-Term US Bond ETF Chart
ISTB has a decent setup pattern. The rising large players volume shows big players are positioning in short term bonds. The rising Twiggs Money Flow shows traders are accumulating on pullbacks. Prices have been consolidating lately. There is a resistance zone just above the current price starting at $50.45. Right above this resistance zone may be a good entry point. There is a support zone below the current price at $50.38, a stop order could be placed below this zone.
The stock screener I used to find ISTB is the one I created for GuerillaStockTrading readers on Chartmill, under the Shared Screens tab, called GST Positive Divergence. I did a video on using Chartmill to find catalysts here.
Lance Jepsen
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