Thursday, October 31, 2013

Long Term US Bond Market Technical Analysis - TLT ETF


Long Term Bond Technical Analysis

This bond market analysis video covers the US long term treasury bond fund TLT.  Technical analysis of the bond market suggests that bond prices have made a measured correction off the August 2013 low and that the rally is mature and may be near a peak.  Ideas for short selling TLT are given based on trend lines and technical indicators.  The momentum indicator is reviewed and the weekly chart head and shoulders pattern target is also reviewed.

Additionally, if this is a bear market in bonds, which I do believe it to be on many counts, I would expect a weekly time frame bullish divergence pattern to develop in the technical analysis before a possible bottom in bonds.  That has not occurred to this point, and so with a measured correction against the downward trend, this appears to be a time to be looking at possible short set-ups.

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