TLT long explanation on my last videohere is more explanation of my last video that why we have 3 targets based on elliot waves. there are 3 elliot waves from small to big picture that gives us some classics theoretical targets.
does it mean we will reach all of them?
does we even pass them?
or we reject from here again?
all possible!!! if you are a trader more than even 1yr you know that ALL POSSIBLE! just trade based on your strategy, open point, risk/reward ratio, SL and TP.
TLT trade ideas
Possible long TLT from 135$Possible long TLT and bottom. RSI super oversold on (D) even 17. Everybody is record short $$$ and record short UST and long reflationary trend and inflation. It's not constant, time for some deflationary move and flip. Sustained break and closed on weekly below 134$ gives us a right to claim TLT will drop further to 118-120$ to lower channel.
Weekly $TLT Most Oversold.... EVER!We are watching a capitulation of long dated bonds in real time. Today's huge gap down of -2% breaking last week's lows is actually perfectly in line with TLT seasonality for the past 16 years. This is no coincidence as the March 2009 - March 2010 sequence in bonds is very similar to the March 2020 - March 2021 sequence. The Q1 FOMC in the 3rd week is usually a catalyst to reverse the sentiment in bonds. This extra gap down near the statistical low for the *Entire Year* is a true gift. When bonds recover, expect a huge buy cycle back into beaten down tech/growth stocks.
A big clue today was Gold. It tracked 30Y bonds (ZB Futures) overnight down, but reversed hard with the Euro off supports. Normally, if TLT was down -2% at the USA open gold would be crushed, but it did the exact opposite. Something is off with long dated bonds and I feel this will be quickly resolved with the FOMC catalyst next week.
Join in this great trade!
TLT Seasonality for the previous 16 years - There are no coincidences!
$TLT Daily$TLT entering nice supply zone here, with solid support at 134. Lot of call sweeps hit the tape today for 140 calls 6/18. This is getting very close to a bottom, which obviously would not be good for equities. Keep an eye on this one. I would sell some puts at these levels or buy 140 calls 6/18 exp.
TLT Is the Most Important Chart To Watch This Week.This month is an incredibly crucial week for TLT and can be a telling signal about the overall market.
Fundamental Analysis:
TLT is approaching the highs it made in August 2019. If TLT is considered a proxy for "risk-off" behavior. Do you think our economic landscape is as, "risk-off" as it was in August 2019?
Short Duration Treasury Bills are approaching negative yields. At Treasury Notes/Bill Auctions, more and more primary dealers are bidding 0%. Long Term Rates will always follow short term rate. Low Short Term Treasury Yields signify that dealers are willing it buy these assets at expensive prices, the buyers don't care about the yield. When Short Term Yields go negative which is very possible, this will cause a domino effect that will cause a major decline in the longer duration bond yields. Primary dealers will bid lower yields on longer-term bonds because it will be a cheaper alternative than buying short-term bills with at zero or negative yields. I guess the main question to ask yourself is: Why are Short Term Yields plastered to zero? If the stock market enters into a "Super Bubble" phase I would expect TLT to fall been lower to 130. But I am mostly convinced that this is a bottom in TLT.
Technical Analysis
1. Bullish Consildation
2. Declining Volume
3. Near 0.5 retracement area
4. Selling Volume Exhausted
5. Bullish RSI Divergence
6. Possible ABCD harmonic
7. Support at 145
8. Has touched bottom of Bollinger Band. (Not Shown) *Use any Mean Reversion TA tool it will show you this is oversold on Daily timeframe.
9. Cyclic RSI shows price is at a very low level relative to past prices.
Rolling (IRA): TLT May 21st 148 to June 21st 145 Covered Calls... for a .92/contract credit.
Notes: A continuation of my TLT covered calls. (See Post Below). With the May 21st 148's at greater than 50% max, rolled out to the June 145's. Total credits collected of 6.42/contract with the June 21st 145's currently valued at around 1.60/contract, so I've realized gains of around 4.82/contract on the call side so far this year. With a cost basis of sub-110 (the last time I acquired), I remain fine with either being called away or continuing to work covered calls.
My natural preference would be for the underlying to settle so that I wasn't constantly chasing calls down the ladder, but you can't have everything.
Deflationary collapse pending catalystTips go based on real rates and speculative forces have pushed the long end of the curve extremely far. Although counter to what most think we're in a deflationary cycle. Tlt is needing a catalyst to cause mayhem and question the FED's credibility. Powell will likely get fired this time
USG bond ETF $TLT options, inspired by CryptoHayesHello. This is my overnight setup for the weekend. I wanted to hold short or open long equities rather than bonds but it's not feasible at the moment.
Unfortunately this is posted after market close, but will serve as a journal for how poorly/fantastically I play it.
A funky strangle, with a 1:1:1 ratio:
Mar 19 +140C @ 0.65
Mar 19 +135P @ 1.45
Apr 16 +100P @ 0.07
Profit zone:
~$133 > x < ~$141
What I am planning:
For TLT to rise rapidly and CryptoHayes to be wrong, letting me roll/close in profit, covering the initial costs of all 3 positions along with profit. This is why i decided to buy the calls closer to the money. If I am wrong on Monday's directional close, I will likely close all 3 positions and take the loss. The expiries are not good.
Mistakes I can point out immediately:
I've chosen options too close to expiry
I expect movement and have not hedged for no mvement
I may have opened too early just to have a position open
Personal consumption is on the rise, and that may lead to inflation
Reason for the Mar 19 140C call: I am very bullish on bonds due to recent news. Stimulus, taxes confirmed not to be reduced. You've got to be mental to think the USG would want to raise rates. Though consumer spending is almost back to previous highs...
Reason for Mar 19 135P: Maybe it'll go down now. Reflation due to easing of Covid lockdowns.
Reason for Apr 16 100P: I'm certain this is not how you do it, but it's my "tail risk", cheap hedge in case yield hell breaks loose.
Better picture because the preview is missing some items:
% Compare of TLT and 30 year yield
Personal Consumption
What's CryptoHayes would have instead recommended: go ape mode on bitcoin, ape mode hedge on bond yields.