3x Inverse TLT ETF: Breaking Out of Descending Broadening WedgeThe Inverse ETF for the 20-Year US Government Bond is currently breaking out of a Descending Broadening Wedge and is looking to go much higher perhaps between the 61.8% and 78.6% retraces which would be about a 500-1,400% percentage gain which also means that longer end bond yields are going much higher.
I previously said I would repost this chart after the split so that the numbers would be accurate, and now that split has happened. I have my eyes on the $36 to hold and am currently looking to get some calls for that strike price expiring next year.
It's worth noting the Partial-Decline we got before breaking out of the Broadening wedge, which makes it more likely to play out.
TLT
TLT vs. US20Y ~ Snapshot TA / Inverse Correlations V2Update from original TLT vs. US20Y idea:
- Switched to New Pane comparison for optimized viewing/zooming in on price movements.
- Added TLT Candles for better price action analysis.
- Added TLT trend lines for greater emphasis on inverse correlation + indication of trend break-outs.
Boost/Follow appreciated, cheers :)
AMEX:HYG NASDAQ:TLT TVC:US02Y TVC:US05Y TVC:US10Y TVC:US20Y TVC:US30Y
3x Inverse TLT ETF: Breaking Out of Descending Broadening WedgeThe Inverse ETF for the 20-Year US Government Bond is currently breaking out of a Descending Broadening Wedge and is looking to go much higher perhaps between the 61.8% and 78.6% retraces which would be about a 500-1,400% percentage gain which also means that longer end bond yields are going much higher.
TLT vs. US20Y ~ Snapshot TA / Inverse CorrelationsTVC:US20Y double-tops, while NASDAQ:TLT creates a double-bottom..
Question to ask tho - has US20Y actually double-topped, or is this just retracement for a bigger push beyond ATHs?
Looking for further signs of confirmation that long-ended yields have indeed peaked...then I'll feel more confident in popping the champagne.
Boost/Follow appreciated, cheers :)
AMEX:HYG TVC:US02Y TVC:US05Y TVC:US10Y TVC:US30Y
TBT- a bearish treasury ETF LONGTBT on the 30 minute time frame shows a trend up in an ascending parallel
channel now at the bottom of the channel where it could go up or breakdown
and go under the channel. The ZL MACD suggests some bullish divergence while
the dual TF RS indicator and the ADX oscillator are non-commital.
The immediate recent short term volume profile with a POC line above price
suggests a lot of trading above price and likely short sellers. A longer time
interval volume profile shows the POC line more than $1.00 below current price.
Price could easily gravitate in the direction of that price magnet.
Overall, I see a bias for a bearish move and will watch this to confirm. i will play
this with put options to leverge the amplitude of the move albeit at higher
risk.
TMV setting up a reversal LONGOn this 4H chart- TMV the leverage bear Treasuries ETF has been trending up
in a parallel channel. AT present it bounced from the top of the channel and is
heading down to the bottom of the channel. It is there that I will trade long
where the bottom of the channel is confluent with the mean VWAP providing
an overlap of dynamic support. Near that same level is the POC line of the
volume profile. Price needs to stay above the POC line for the probabilities to
tell me to trade long. Roughly I am looking for a trade from 145 to about 160 for
a 10% move more or less. The stop loss under the channel trend line for about 1.5
and so the ratio is about 6. Once in the area of the bottom of the channel. I will
look to the indicators and zoom into 15-30 minutes as a time frame to find the
entry. I will entertain taking a trade in a fair number of shares and potentially
buy a put option for insurance against the downside to hedge against losses.
I expect the trade to last a week or less and so averaging about 2% gain daily.
$TLT ETF Double Bottom Weekly ChartThe TLT ETF appears to have formed a potential short-term bottom, characterized by a double bottom pattern on the weekly chart. The iShares 20+ Year Treasury Bond ETF (TLT) is an exchange-traded fund that seeks to track the performance of the ICE U.S. Treasury 20+ Year Bond Index. This ETF focuses on providing investors with exposure to long-term U.S. government bonds.
SPY/TLT ratio chart at monthly extremesNot calling a bottom in bonds here, but the extreme monthly RSI of this SPY/TLT chart is impressive. Bonds broke down again over the summer but may be forming a double bottom. Could bonds finally get a serious bid? This charts says it's possible, but exact timing may be difficult to do.
Yields Surging / TLT FallingThe technical weekly uptrend that yields have formed is rather astonishing.
The sheer power of this move suggests likely more upside yields. Some basic measured moves suggest a potential whopping 5.7% on the 20 year.
Imagine TLT long bond traders!
Nothing is probable but it makes you wonder if inflation is becoming more entrenched since the bond market is very forward looking.
$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
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.