Tuesday, May 03, 2011

Bonds - Potential Trade Setting Up


Above is a daily chart of the bonds (TLT) and as you can see this market has been going sideways for several months establishing what is known as an inverted head and shoulders bottom. We are currently trading at the neckline (resistance) which comes in around the 95.00 level. A close above this level might set the stage for a rally. One other thing to keep in mind is that the bonds tend to rally around this time  of year so you may want to keep this market on your watchlist for a potential buy.

3 comments:

Anonymous said...

Hi Kevin, Can you comment on TLT's longer term head and shoulder pattern dating back to May 2009? It is interesting on the H&S you identified, if fulfilled, it would complete the high point on the right shoulder for the longer term H&S

Anonymous said...

Hi Kevin,

Your mail address seems to be incorrect. Is there a way to contact you by mail?

Anonymous said...

Does your comment on TLT bonds also apply to high interest (junk) bonds?

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