Last week’s Whoopee Cushion bounce came just in time to rescue the faintly bullish pattern on the rightmost side of the chart (inset). If the subsequent selloff resumes this week, causing TLT to land on the green line (x=101.69) with a thud, that would trigger a moderately attractive ‘mechanical’ buy. It would not be predicated on a run-up to the ‘D target, however, but rather on a one-level ride to p that could produce a small gain with good odds nonetheless, even with call options.
TLT – Lehman Bond ETF (Last:102.60)