The downside ‘D’ target at 98.44 (see inset) is so compelling that a tradeable bounce from somewhere very near there is all but certain. Will it be sustainable? Probably not, since there is no indication that Fed policy is about to change significantly. However, we’ll monitor the presumably corrective rally closely, since the creation of an impulse leg, even on a chart of lesser degree, could portend a potentially important tone change. To play the bounce, use call options expiring no later than July 22, pegged to the 101 or 102 strike. If I’m in the chat room at the time, I may be able to provide more-detailed guidance.
TLT – Lehman Bond ETF (Last:99.09)