Since we noted a couple weeks ago that the TIP fund was trying to put in a short-term bottom, it ground around but continued upward. Of course, with the smell of risk ‘off’ in the air, TLT has gone up even better lately.

What I find pretty cool is the inverse nature of TIP-TLT and USD (UUP) in the lower panels.  We are still on the potential ‘inflation trade’ (anti-USD) bounce theme but it is safe to say that for it to get going, TIP-TLT would need start climbing.  I have some TIP and STIP to go along with SHY as part of my ‘cash equiv.’ but think of it more as an indicator.