TLT trade ideas
Lookout! The Wealthy Are Shorting The Economy20 year yields appear to be breaking out of a long downtrend which has witnessed a boom in the stock market since this asset's crash back in March of last year.
But now the winds seem to be shifting possibly again as now the TLT has started July with fireworks and yields appear to be flipping bullish.
This would be very bad for stocks.. however please keep in mind that this is a lagging indicator. Sometimes it plays out in perfect sync, sometimes it takes months to come into effect. Which means, the remainder of the year should be safe for equities. 2022 however, if 20 year yields confirm bullish, would be fair game to see the real crash in the stock market that many have been waiting for.
A play on bonds could be the potential bet/hedge in the distant future.
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Infflation HysteriaInflation is the hot topic, deflationists have been told to leave, don't let the door hit you on the way out.
Anytime the weekly RSI on TLT has gotten this oversold we have been at or near a bottom.
Maybe Inflation Nation is getting too crowded and GOLD which follows TLT closely is sniffing this out.
The "Big Short" is buying call options on 3X levered Short Treasury ETFs, what could go wrong?
Are the bond bulls in control or is it time for a break?Bonds have reached a very important level. For now this seems like a *logical* place for the *anti-reflation* / deflation trade to end, and for the risk on trade to be back. I am more on the disinflationary (very low inflation) camp, however bonds have risen substantially and it might be time to take some profits before the resume lower. I don't think we will have extremely high inflation yet and I don't think we will have the good type of inflation because things are going well. I do expect Oil to go higher and that to cause all sorts of issues and higher prices, but other than that I don't think bonds will get crushed. At least no yet.
The key question for the whole reflation trade is... WIll bonds and USD keep going higher, with only US behemoths rallying or and the rest bleeding or struggling, or could we get a larger shock? Because to me if the USD really breaks out and heads for 96 on the DXY, while bonds also rally... we will eventually see something break. I think we'll soon have a better idea of where things could be heading next so it is better to be patient and take a few select trades that go well with this environment and look technically sound.
๐๐ผ๐ป๐ฑ๐ ๐จ๐ฝ๐ฑ๐ฎ๐๐ฒ: $TLT Daily. Bearish Divergence โ ๏ธ๐๐ผ๐ป๐ฑ๐ ๐จ๐ฝ๐ฑ๐ฎ๐๐ฒ: $TLT Daily. Based at 135 support area and now testing 200dma. Above can go higher, but bearish divergence โ ๏ธ so could top
$TNX $ZB_F $ZN_F $SPY $SPX $ES_F $VIX $QQQ $NDX $NQ_F $GLD $GDX $DXY #Bonds #Stocks #Trading
TLT - Confirmed bottom - More upsideThoughts and ideas are my own view.
Now, I've been in a trade on TLT for a little while now. About 2 weeks. It's quite obvious there's a couple things going on here:
1. A reduction of downward momentum that ended in mid-March.
2. A move up followed by a corrective move to the downside which did not make a new low
3. Our indicators indicated we were about to make a move to the upside
4. There's also a visible inverted head and shoulders that broke out on June 8
Mix all these things and there's a squeeze that is expanding to the upside as well. Although we may see a pullback to retest the breakout area, I'm interested in seeing TLT make a move up to approximately $149 in the coming month.
Is TLT saying we are about to have a Vix explosion? I have been following many charts and patterns for quite some time. and The set up for an entire market melt down is almost too perfect right now. and I will go through the list of events that have taken place:
First lets start with Gold. Gold had rallied on the back of lower yields for the better part of 2 months all to just get shot down during the FOMC meeting just a few weeks ago when the dollar shot up. (gold tends to lead the market sells offs by about 2-3 weeks) Mind you all of this has happened as yields have gone lower and lower. (totally not what you would expect from an "inflationary environment") gold respects real rates however if deflation was about to start happening, then this is the exact precursor you would expect. This is why I believe that if I am wrong about the vix explosion gold is going to be the best buy of the quarter.
Then lets move to the DJT (dow jones transports) I explained this in my prior IYT analysis which can be found here:
The transports just like gold and precious metals are generally the first assets to take a hit give or take about 2-3 weeks before general market correction.
and that leads me to my last point. TLT, oh tlt you dirty whore you. (I am currently long tlt fyi) The set up in the line chart of tlt is identical to the pre-covid crash as you can see in this chart.
But wait there's more.. Why has DXY been rallying along with TLT that does not happen very often. Some times it happens here and there But it does not happen for stretch of 2 weeks. All I am saying is stay hedged people. this is a very very risky set up.
$TLT Continues to Defy Traditional Logic and Beat Up Bond ShortsTLT has been trending higher. Make no mistake about it. That's in spite of record inflation and 7% GDP growth estimates for the year. Higher. Rates, lower.
One would think something has to give here. But the lower-for-longer trade seems to be peering around the corner right now.
TLT - TBT - IWM - FED Vs BurryI believe in Dr. Michael Burry analysis and vision.
in the next crash, which is warming slowly now, we can make a lot of gains. We only need long term strategy and patience.
I keep following Dr. Burry portfolio, the next SEC filing will be around August 16.
Good luck everyone.
Samy
Don't get PLAYED by Big Money: Inflation Trade Over?To trade the markets you have to be AWARE of the world and what is going on. We have to read the news every day but we should not always take what people are saying at face value. The news is never a leading indicator but it can at times be an INVERSE indicator. Don't get played by big money "talking their position" ...
In this video we look at examples of the last two years when the media hype was the OPPOSITE trade to take for...
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