Friday, April 30, 2010

Bonds Breakout To A 3 Month High

The bond market (TLT) moved higher today making a 3 month high. TLT also closed above its 200 day moving average. You'll notice that we are now seeing some volume come into the bonds on this last move up which may be an indication of things to come.

As you know I've been looking to short this market but I never got the confirmation that I was looking for. Some of you have left comments suggesting that I was waiting for too much confirmation but as you can see I avoided a loss by waiting for the market to prove itself to me.


Don's "Trading-In-Action (TIA)" said...

Well, Kevin, since you waited for a confirmation to short TLT did not materialise and the market has turned bullish for TLT, maybe you can enligthen your followers when will you enter long in this case? I will be most delighted to hear from you. Personally i did not trade TLT and my short would have been had been taken out at 92, i will never go long with it cos technically and fundamentally, TLT failed to convince me it is bullish...just my thoughts

Anonymous said...

In your chart, there were 2 previous times it went through 200MA, but both times were faded aggressively latter. Is it gonna be the same this time?

Kevin said...

My setup to short did not unfold the way I had planned so no trade was taken. As far as getting long, I see no reason to enter long here. Just because no short trade was taken, that does not mean I MUST now go long. Doing nothing is also a position Don. I hope I "enlightened" you.


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