20 year plus bond etfSince mid July, The price of the 20 year plus Bonds has touched or tested the top orange line about 8 times and has retraced 61% more times than not. Bonds going as low as $148 would meet the 200 ema and would be a retracement of 61% of the previous low. The previous has been broken. Let's see where the next level of support is. If this falls, the Yields should rise. Normally, stocks fall "for the most part" when this happens. Let's see if this holds true!
TLT trade ideas
Dollar Up, Vix Up, Bonds UpToday was for the bulls thus far but we're still in a dollar up, vix up, bonds up scenario
The TLT move does not look like a fake break and there is room to run on the RSI. There is no bear divergence.
According to previous moves on the VIX, it would need a green day tomorrow to have a chance of making a new high on this move
The dollar continues to grind marginally higher and i don't think the move is complete yet
NOT TRADING ADVICE
Short Bonds - why, and market review
Simple chart - There is a small dotted green line up top showing you divergence in the RSI.
You can see what happened, Bonds went way up. Now we have a much bigger divergence the other way in red.
So this sell off that saw the ES touched the 4500 area three times this week reminds me of the September low at 4250 same price action - which thrust up 500 points.
Both the Nasdaq and E Mini Futures returned to almost exactly 50% Fib weekly retracement - not luck, not a sell off in my opinion but just enough to confuse and liquidate a bunch of people.
I am short vol through a long position in SVXY outright and short bonds through TLT through 154 PUT options. The market is off the lows but most likely there will be an opportunity Monday to get in.
My upside target 4620 on the ES Futures to take these positions off - however I think we can go to ALL TIME HIGHS before puking epically - as the Fed taper is happening but we'll only get the details at Dec 15th Fed meeting.
If we get back to 4500 area in the ES - I will look to take a long positions through Futures, however did want that risk on over the weekend.
The orange arrows are a measure of volatility.
Six hour chart.
Do you feel lucky...well do ya? 🤠Look at the chart...then look at your portfolio...then look at the chart again.
Where do you think TLT is heading? Every time JNK/TLT touched the trendline, a TLT rally followed it, 4 times in the past 13 years. Do you think it will happen a 5th?
30Y at zero is something like ~200 on TLT, this is the best ROI trade right now IMO. Yes it will take a year or two, and if it happens sooner, then great! :)
No need to make comparisons to 1929...too many different factors at play. However, we also had a similar setup when YoY inflation was high back in 2007 with housing at all time highs... and remember where that ended up? ;)
Not saying anything will happen next week...but as a long term investor this is my bid over the next year.
If 13 year downward trendline breaks on JNK/TLT, I'm out of TLT...but until then...
$TLT Retrace and GoThis also looked to be a valid bearish cipher followed by a possible bullish 5-0 patter. However, I decided to assume that a double bottom has completed its measured move and will follow DOW's law with a 50% retrace. I believe the trend is still strong and after the correction will reach newer highs. Personally, I'm long here but acknowledge the short-term downside risk. Good Luck!
Opened: TLT June 17th 2 x 171/153 Put Back Ratio Spread... for a 36.45 debit.
Comments: Another put back ratio spread, this time longer-dated. Buying 2 x the 75 deltas and selling 1 x 50 delta to create a -100 delta short position in 20+ year paper on strength here. Will look to take profit at 110% of what I put it on for.
$spy $tlt Look for bonds to take out 152If bonds can take out 152 then there is an air pocket between 152-156 and you could see a very quick squeeze to 156. That would coincide with another drop in the market as well. At that point I am a seller of bonds and buyer of stocks. $spy may have another 2% downside.
If this is an inverted H&S then we could easily see top of volume range to 160 on tilt
Opening: TLT March 18th 2 x 163/151 Back Ratio Spread... for a 23.99 debit.
Comments: Buying 2 x the 75 delta puts and selling the 50 delta put strike in the March expiry on strength here to create a synthetic -100 net delta short position with a 151.01 break even in 20+ year paper. Will start to look to take profit at 110% of what I put it on for.
TLT +.41% / While 20Yr @ High Yield of Month 2.06%Today's 20 Year Auction was sloppy and dangerous for Wood Panel FanBoys.
We released the Mastif's who chased Eddie Munster off our land.
Alexandra put a few 10 Gauge Triple Otts in Steve's BUttocks for good
measure.
Hopefully, this will suffice.
IF not - it's on to more persuasive actions. Alex adores the thought.
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www.treasury.gov
Bonds are seeing further FED Props.
Jit's Nasty out there for the 007s.
ZN is barely hanging on... Price Objective for ZN 129.55
Structure is Weakening
DOW at Session Lows.
Crude Dumpster Fire.
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Bond Market Dislocations ahead.
TLT - WeeklyDivergences again for the Tilt - O - Whirl.
Just as the 007's were back to making 180 Hog Calls.
Signs, future signs, do not appear promising.
With a Failure to Break the Prior 152.71 Highs.
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You have a large Bagel to contend with for now.
139s remain open as do 134s.
TLT - ROCs @ Mid Curve007s have been back announcing the latest "Sure Thing"
in Scottish Moors.
Just bring back the Wood Paneling, please.
We would appreciate Steve leaving our Front Yard.
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TLT has not closed over its recent Highs.
All Bets at the Flamingo's Roulette Wheel are on 33.
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With the 2nd highest ROC in a few weeks @ +7.75%...
Sightings of "Wrong Way Conway" @ Gilligans Isle/
We'll Oppose - as when we hear Metal to Metal contact,
loud crunching sounds, glass breaking, blood, and bags
of Frito Lays strewn about...
Train Wreck.
Opening (Margin): TLT January 21st 2 x 160/149 Backratio Spread... for a 20.34 debit.
Comments: Buying 2 x the 82 delta strike and selling the at-the-money 49 delta strike for a setup with a net delta of -115, so this is going to move a lot like short stock. Going with the January expiry to give it more time to work out if it needs it, but will look to take profit at 110% of what I put the trade on for.
TLT Squeezing to stratosphereLike to thank somebody for pointing out the squeeze, but don't know the dude's name. Will likely dca into tlt shares over next 6 months or until squeezed. if anybody is thinking of following this trade just go check my other losses and maybe inverse this like dr. michael burry.