On the one hand, Treasuries became short-term quite oversold last Friday. In addition, we have a huge FOMC week, compete with new forecasts and a Chair Yellen press conference this coming Wednesday.
And yet, Treasuries continue to stage weak intraday bounces which have been sold into.
As I noted on Friday, I took partial profits in my TBT TMV bearish ETF”s inside 12631. However, I retain positions in both and am actively seeking to add back this week.
On the daily chart for the TLT ETF, below, should we see bonds continue to bounce softly into the Fed it may very well set up a “bear flag” pattern (light blue lines) before another drop lower in bond prices, and thus another spike up in rates.
At that point I would be inclined to add back to my shorts.
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Check out WDC. Under 97.60 that thing should be in a free fall for a couple dollars.
Nice
oil printing a hammer. Could be a bottom today.
Good resilience today.
FOMC forces themselves into Japan’s Central Banking. The Federal Reserve cannot raise rates without severally damaging the US. economy. Shorting the treasury is a no brainier and good money.
Interesting, thanks.
Chess, liking the short SBUX idea. What are your thoughts on an entry here as it could be quite oversold now? I understand your initial target is $70 with potentially retesting the high $60s? Thx!
Tough to add or initiate here.
Patience and waiting till the market delivers further confirmation is always a valid option, sometimes the best risk-reward if already in a positive trade.