TLT: A Space Odyssey
TLT has been in my crosshairs sometime now after going neutral (not bearish) on bonds in late March. The initial push into June had effectively been front running a potential rate cut by the Fed in July. Since being one of a handful that bought bonds in August-September 2018, there was NO NEED to chase it.
After going absolutely nowhere from June 1 to this week, TLT began to trade within an narrowing rising wedge (as we noted here). Price action actually faked fashionally-late buyers with a false break out and was slammed lower.
We actually foresee a significant pullback in TLT on the back of better than expected macro data globally and increasing inflation pressures. Bearish on pullbacks and look for a second target of 126.5.
"This is Major Tom to Ground Control
I'm stepping through the door
And I'm floating in a most peculiar way" - David Bowe, Space Odyssey
After going absolutely nowhere from June 1 to this week, TLT began to trade within an narrowing rising wedge (as we noted here). Price action actually faked fashionally-late buyers with a false break out and was slammed lower.
We actually foresee a significant pullback in TLT on the back of better than expected macro data globally and increasing inflation pressures. Bearish on pullbacks and look for a second target of 126.5.
"This is Major Tom to Ground Control
I'm stepping through the door
And I'm floating in a most peculiar way" - David Bowe, Space Odyssey