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Michael Kao, CIO at Akadia Capital, comments on the failure of the TLT double-bottom pattern in the market as of October 7, 2026. Kao humorously likens the situation to Wile E. Coyote, implying investors should be wary if downward momentum persists.
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Kao previously identified what he described as signs of a capitulation bottom in TLT and disclosed purchasing short-term call options during a period of perceived overselling here. In a separate analysis, he noted that rising long-end rates had reduced support for equities, with growth stocks remaining a key area of strength here. These views provide recent context for Kao’s current commentary on market momentum.