$US30Y - YIELD GOING HIGHER (REACCUMULATION)Bill Hackman is right, yields are going higher!
There have been discussions as to where the yield is going from here. We believe they are going higher based on the the current re-accumulation schematic.
This chart will break out and it's not a bull trap.
We could see 5.5%-6.5% rates.
NOT-FINANCIAL-ADVICE
TLT
TMV leverage inverse ETF for treasuries SHORTTMV on the one-hour chart tested two standard deviations above the mean VWAP in
both late May and early July it fell to one standard deviation below VWAP but then rose
sharply into beyond the two standard deviations line ( thick red ) ascending into a YTD high.
I believe that this is due to the recent federal debt creditworthiness downgrade.
The threatened rise of BRICS reserve currency and potentially adversely affects the
value of the dollar ( DXY) while supporting gold prices. I see this as a good continuation play
no matter the overextension of price. Both the dual MTF and the zero lag MACD however
suggest a pullback. The mass flow indicator does as well. As a result I will look at TMF
to go long trusting the indicators to give me a directional bias.
TLT | Watch this one RIP Higher | LONGiShares 20+ Year Treasury Bond ETF seeks to track the investment results of the ICE U.S. Treasury 20+ Year Bond Index (the "underlying index"). The fund will invest at least 80% of its assets in the component securities of the underlying index, and it will invest at least 90% of its assets in U.S. Treasury securities that the advisor believes will help the fund track the underlying index. The underlying index measures the performance of public obligations of the U.S. Treasury that have a remaining maturity greater than or equal to twenty years.
Opening (IRA): TLT December 15th 91 Short Put... for an .86 credit.
Comments: Laddering out at better strikes than I've got on currently, targeting the 16 delta strike, wherever that lies. I doubt the underlying goes this low, but if it does, I'm fine with taking assignment of shares and selling call against.
TLT Short term Treasuries Bullish LONGTLT as shown on a 30 minute chart shows TLT in a narrow range last week and then a pivot
down to begin this week followed by a downtrend and a small correction until then the fed
news of the rate hike came out. Today the general market dropped after some federal financial
data came out and a treasury auction was a dud bond auction with little transactions occurring
confounded by Bank of Japan actions inconsistent with the path of the US Fed.
The mass index indicator has signaled a reversal as the signal rose above the reversal zone
and then dropped below the zone thus triggering. The Relative Trend Index documents
the end of the red downtrend with the signal line nearly returning above zero. Overall, I think
TLT traders overreacted to the federal news and the catalyst from Japan. I believe
this to be a good point to enter long using the pivot low as the stop loss. Targets are 100.5
just below the mean anchored VWAP and 101.5 just below POCl line
volume area of the intermediate term volume profile. This offers modest potential profile
for a relatively low risk. However, I intend to trade this intraday as a same day expiration
(0DTE) option striking 101. I will set a set a stop-loss on the option of 15% while expecting
potentially 50-200% ROI making for an acceptable ratio.
TLT - is now the time to start accumulating?Long duration treasury ETF's have long been touted as hedges against risk and inflation. However, treasury prices and rates have an inverse relationship. When the US Treasury issues new bonds during a rate hiking cycle, it depresses the prices of the long duration treasuries within these ETFs. Conversely, when rates reach their peak and subsequently start to decline, these ETFs will hold treasuries with higher rates than the newly issued ones. This explains why we see TLT price increasing in a low rate environment and decreasing in a rising rate environment.
If we are near the conclusion of this rate hiking cycle we should see a little more consolidation in TLT, followed by price increase. I have been and will continue to add to my position anytime we are close to $100 during this consolidation. I'll begin to take profit $112-114 and then re-evaluation market conditions.
Opening (IRA): TLT December 15th 94 Short Put... for a .89/contract credit.
Comments: Here, targeting the 16 delta strike in the 20 year+ paper exchange-traded fund to round out short put rungs in the third quarter.
I may continue adding rungs into 2024 if the underlying continues to hang around this level, since the Fed is supposedly forecast to cut rates at some point going forward.
TMF - Long Term Leveraged Treasury ETFOn this 4H Chart TMF has rallied in the past week about 9% as the reports of the impetus of
inflation has diminished. On the zero-lag MACD, the lines are staying above the histogram
which has not converted from negative to positive. The dual time frame RSI showing
low 1 hour TF in blue and daily TF in black has the lower crossing over the higher both
at the lows on July 10th and now both over 50 with the low 1 hour TF still above the higher
daily TF. This confirms bullish momentum. Price is on a VWAP breakout ascending from
the support of the 2nd negative mean anchored VWAP to above the mean anchored VWAP with
a retest as well. Price is now above the POC line of the volume profile demonstrative
the dominance of buying pressure over selling pressure. On the ADX indicator, a positive trend
is rising while down trend is dropping proportionately with the intersection and cross occurring
on July 12. Positive ADX is staying above 20.
Overall I see this as an excellent setup for a long swing trade targeting 8.05 in the area of
the values of the highs of June. A higher target would be about 8.3 where there were some
recent pivots If the fed does an about-face and pauses rate hikes, a significant rally could
ensue.
TBT Treasuries Bear Leveraged ETFTBT is going to take another swing now that interest rates are going up.
Fundamentally, Treasuries and other bonds will go down on their real face value
because their yield is lower than the new going rate. Inverse EFTs like TBT
will go up when Treasuries go down.
On the w Chart chart, price is sitting above the POC line of the volume profile
where there is support and high volatility. Above the line shows buyers in control
ready to move price higher.
The Awesome Oscillator flipped green today after the fed news showing that selling momentum
has been replaced by buying momentum ( capitulation at the bottom).
The volume indicator shows a clear uptick in buying volume.
TBT offers options to further leverage this trade.
I will take a call options position of several contracts for the 5/12 expiration at a strike
about 5% below the current price. I expect 100% return on risk by next Monday and more
after that.
TMV Treasuries Leveraged 3X Short Inverse LongTMV is an ETF Shorting the Treasuries. On the 2H chart, price is rising as the treasuries are
suffering value contraction while interest rates are steady or projected to rise. The chart shows
rising volumes, upwards volatility as well as a PV Trend demonstrating trend strength. I see
these all as confirmatory for bullish momentum. I will take a long trade into the next round
of federal news. The employment data showing strength in new jobs and low unemployment
will likely lead to another rate hike as the fed continues to try to beat down inflation and
will not relent in face of those data pieces. CPI and PPI may add fuel to the fire this week
and TMV may continue to rise.
Opening (IRA): TLT November 17th 94 Short Put... for a .75 credit.
Comments: Continuing to build out rungs in 20-year plus maturity paper, targeting the 16 delta strike to emulate an equities/bond mix in my portfolio using short puts, particularly since TLT 30-day is actually greater than that in SPY (15.1% for the former; 13.0% for the latter).
As usual, I'm fine with taking assignment of shares at this level and then proceeding to "cover" (i.e., sell call against) if that happens.
Yields are Yelling: Recession is comingIt looks like we are turning over.
Coupled with gigantic short positioning of speculators on bonds (highest in history bsed on the COT Data), the chart indicates that yields will fall again.
Why would they fall?
Because of a flight to saftey and/or a recession.
I am keeping it very simple, I just buy Bonds via ETF. I am long TLT, IEF and SHY.
With that trade, I am also long USD, since my native currency is EUR.
If we have a weekly close above 3,5% on the US10Y, I will exit my positions.
It might also be lucrative to go short stocks now, but I wont do that too much.
This might be a great trade, but I am viewing it as a set up for an even better one.
We might get a great opportunity to buy stocks soon.
TLT Poised for Promising Gains 🚀💰Name: TLT - iShares 20-year bond ETF
Time Frame: 15mins, daily chart
Direction: long
Comment:
I have a promising investment opportunity to share with you. After careful analysis, I believe interest rates have reached their peak, indicating a favorable outlook for bonds. In particular, the iShares 20-year bond ETF (TLT) is exhibiting all the right signs for potential gains.
TLT is currently forming a solid technical stage one base, suggesting a strong foundation for future growth. Moreover, there's an encouraging development as the 50-day moving average (50DMA) is crossing over the 200-day moving average (200DMA) on the daily chart, signaling a bullish trend.
While it's essential to support his fundamental view with technical confirmation, the prudent approach would be to wait for TLT to surpass the $108 level before considering a long position. This breakout would indicate a significant upward momentum.
Considering these factors, TLT presents an enticing investment opportunity for those looking to capitalize on the potential rise in bond prices. Keep a close eye on TLT and wait for the breakout above $108 to potentially join the long side.
I am personally buying now and after breaking 108.83 I will buy more aggressively.
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Remember, this contribution serves as an informative analysis and should not be construed as financial advice. Stay informed, stay connected, and happy investing! 🌟📈
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Significant Divergence in equity markets and leading indicatorsObservable for weeks now, and recently, the divergence is much more pronounced.
What I am referring to are that the equity markets appear to be more and more bullish, breaking out of trendlines; while the leading indicators (TIP, TLT, JNK and inversely VXX) show an imminent deterioration, about to breakdown of trendlines.
The combined US equity markets and particularly the NASDAQ itself is very bullish, spiking up and hard in the last two weeks, extending further from mean.
So, going forward the next couple of weeks, either one of two needs to happen.
EITHER, the equity indexes continue the upward surge and the leading indicators reverse course to align and exceed (and return to be leading indicators);
OR the equity indexes breakdown really hard to converge with the leading indicators.
Watch for the latter, as the leading indicators break down of the trend line and show commitment. Then the equity markets may give a swift reversion into convergence and confluence.
There are many ways to look at this and many more parameters to add in, but keeping it as simple as I would, perhaps waiting and watching for the next couple of weeks might be better than taking a committed position.
Stay safe, keep a watchful look, be ready...
Big divergence between $SPX & $CPERThis probably is not a good sign for the SP:SPX , as these assets are highly correlated (0.88) and normally AMEX:CPER leads the business cycle.
Also, the TVC:VIX is back above 20 and NASDAQ:TLT hasn't resume its downtrend.
Even the dollar AMEX:UUP is showing strength again.
I'm 87% in cash and also have tighten all my stops.
Let's wait and see if the SP:SPX holds or breaks down.
TLT / TBT Ratio - a bonds long and short oscillatorOn the daily chart- I have plotted the TLT (Long Bond Leveraged) ETF vs the TBT (Short
Inverse) as a ratio. The ratio is running on a cycle between high and low. On the chart for
reference is a Hull Moving Average of 20 days. A more frequency cyling could be achieved
with a paid Tradingview subscription and a charting time frame of 2 or 4 hours.
For the trading idea, when the hull moving average is upgoing and the price is above it, the TLT
can be bought while when the moving average of the ratio is decreasing and price is under it,
the TBT can be bought. At a high pivot point, all TLT is liquidated and a TBT trade is taken .
For a low pivot point, TBT positions are closed and TLT long trades are taken. The best trades
are at the pivot points and when a doulble top or bottom are put onto the chart.