T-Bonds have fallen moderately so far following a 100.57 top in this ETF vehicle that we’d anticipated precisely with the purchase of put options. The new pattern shown can be used to set up more trades now that TLT has tripped a reverse-pattern sell signal at the green line. There are two possible opportunities in prospect: 1) shorting near x=96.91 with a ‘camouflage’ trigger to reduce risk; and, 2) playing for a bounce from p=93.26. If you are interested in the more immediate opportunity, please let me know so that I can provide timely guidance in the chat room.
TLT – Lehman Bond ETF (Last:96.52)