• 747 days Will The ECB Continue To Hike Rates?
  • 747 days Forbes: Aramco Remains Largest Company In The Middle East
  • 749 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,148 days Could Crypto Overtake Traditional Investment?
  • 1,153 days Americans Still Quitting Jobs At Record Pace
  • 1,155 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,158 days Is The Dollar Too Strong?
  • 1,159 days Big Tech Disappoints Investors on Earnings Calls
  • 1,159 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,161 days China Is Quietly Trying To Distance Itself From Russia
  • 1,161 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,165 days Crypto Investors Won Big In 2021
  • 1,166 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,166 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,169 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,169 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,172 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,173 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,173 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,175 days Are NFTs About To Take Over Gaming?
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

  1. Home
  2. Markets
  3. Other

TLT: Another Great Set-up

The last time I identified a "great set up" it was in the Market Vectors Gold Miners (symbol: GDX). This was only a couple of days ago, and since that time, the GDX is up nearly 10%. Another great set up is brewing as well, and this time it is in the i-Shares Lehman 20 plus year Treasury Bond Fund (symbol: TLT).

Here is the set up. My bond model, which uses intermarket inputs, remains positive. This model has been positive since March 11, 2011. Within the context of positive fundamentals for higher bond prices, we have the following technical set up, which is best shown in the daily chart of TLT. See figure 1.

Figure 1. TLT/ daily
TLT Daily

The black and gold dots represent key pivot points, which are the best areas of support (buying) and resistance (selling). The most recent key pivot at 114.24 should have acted as support, but it did not. However, it is not unusual for prices to briefly trade below support levels -taking out the "weak hands" -- and then quickly reverse back through that old support level leaving the sellers on the sidelines. This is "typical" bull market action especially in those trends driven by positive fundamentals. Therefore, a daily close above 114.24 would be bullish. This is another low risk set up as I would not want to see TLT trading below the recent weekly lows (~113).

 

Back to homepage

Leave a comment

Leave a comment