Powell wants asset tapering to begin this year
On Friday, Federal Reserve Chairman Jerome Powell said that he was one of the majority of Fed officials who believe the central bank can taper bond purchases this year.
In his Jackson Hole speech, Powell revealed that at the FOMC’s July meeting, he, along with most of the participants, opined that if the economy evolved broadly as anticipated, it could be appropriate to start reducing the pace of asset purchases this year.
Powell said that the Fed's "substantial further progress" test on inflation had been met, adding "clear progress" had been made on a return to maximum employment.
The Fed is currently buying $80 billion of Treasurys and $40 billion of mortgage-backed securities each month.
Powell did not mention when the Fed might formally announce the taper. Officials are divided about whether to announce it at their meeting on Sept. 20-21 or wait until November. The Fed chairman also didn’t specify the pace of the tapering.
GOVT sees its 50-day moving average cross bearishly below its 200-day moving average
The 50-day moving average for GOVT moved below the 200-day moving average on June 12, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on July 07, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on GOVT as a result. In of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for GOVT turned negative on July 06, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 56 similar instances when the indicator turned negative. In of the 56 cases the stock turned lower in the days that followed. This puts the odds of success at .
GOVT moved below its 50-day moving average on July 07, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GOVT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
The 10-day moving average for GOVT crossed bullishly above the 50-day moving average on June 22, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GOVT advanced for three days, in of 288 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 199 cases where GOVT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
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Category IntermediateGovernment
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