The ends of the track bar or at least one end is typically on a heim joint. That means, yes, it should be able to rotate a bit to allow for geometric changes as the axle articulates up and down and at large angles. it should NOT be able to move left to right or in any other direction besides the limited rotation allowed by the heim joint.

 

I have the 3" teraflex lift and had the death wobble.
It had nothing to do with wheel'n.
It was a bad bushing in the adjustable track arm.
They warentied it out no problem and where very nice and sorry etc.

They told me how to check if it's the bushing.
One person needs to turn the wheel back and forth.
The other person (you) need to get down in front and LOOK at the bushing/arm while its being turned.
If the arm moves AT ALL the bushing is "bad" and you are in for a really lovely time if it's not corrected.

Hope it's not that then again if it is they will swap it out for you and that might be better than broken stuff etc. would be.

Whatever it is get it fixed before you do anything else as death wobble is the single worst most dangerous thing I have ever experienced.
It is flipping AMAZING what your Jeep can do all by itself!
Mine gave me no symptoms prior to just bursting into a frenzy of insane hopping jerking jumping bouncing bucking twisting turning JOY!
The single most frightening thing I've ever personally experienced in any "car" ever.
I say that including several totals and other accidents I've been in that at least made sense.
Death Wobble makes no sense.
None.