Bond, Bear Trap … Now ?

TLT, Penetrates Support Early

Looks like bonds (TLT) aren’t wasting any time.

This update proposed we’d get a penetration of support sometime around the upcoming Fed meeting on the 26th of this month.

However, today, TLT price action has moved lower, penetrated support and is resting just below those levels.

Long Bonds (TLT) Weekly

The Weekly chart shows price action hanging just below support levels (blue line).

TLT is at the danger point where risk of going long, is least (not advice, not a recommendation).

My firm has no interest in buying the debt of a bankrupt nation … any nation. So, we’ll stand aside on going long the TLT.

However, we can use this action as a proxy for the overall markets. That is, a strong TLT upside reversal may indicate downward acceleration in the major indices; S&P, Dow, QQQ and on.

Senior Miners, GDX

The daily chart of GDX has posted a new daily low.

This action helps to confirm that GDX remains in the downward trading channel, discussed here and is now continuing to move lower into that channel.

Positioning:

Remaining short GDX via DUST and increasing position size as the market allows (not advice, not a recommendaiton).

Trade identified as DUST-21-01.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

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