Here's a fascinating chart from technical analyst Chris Kimble on bond yields, one that recalls the first chart of his that I posted (February 26, 2010).

Click for a larger image

Chris comments: As you might recall, the first chart I sent you was a long-term bond chart, reflecting that yields were at the top of a long-term channel and that investors should purchase bonds (link to the article).

Then in September I shared a very different chart with you, showing that yields were at the bottom of the falling channel and investors should sell bonds and short them (link to the article).

Now we have come almost full circle, in that yields are back at the top of the falling channel, up against key resistance. TLT, the 20-year Treasury ETF, has fallen over 20% in price during this yield rally, and bond bears are showing up all over the place in sentiment studies.

See the chart above for the current yield situation. In my first chart to you, the suggestion was to buy bonds (an out-of-favor idea at the time) due to channel support. Is buying bonds at channel resistance an out-of-favor idea again? Will the results be different this time around?