As we have been continually saying the equities market is on egg shell thin shaky ground right now
Bonds have been through a brutal bear market and look ready to take off
Anticipate a July Fed rate hike as the catalyst that pushes equities off the cliff
This will also be the catalyst that ignites the Bond Rocket
So as we mentioned in previous ideas if you are Long equities you should really be focused on risk management
And if you are looking for a place to reallocate some funds LONG TLT is setting up to be a fantastic trade
FYI- there are few really nice options plays out there if you have the appetite :)
Good trading to all!
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Yields Falling = TLT Rising
Get Ready!
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Potential paths. All still heading UP!
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Slight tweak to the count
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With a break of last weeks high the green count is now our highest probability path.
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Well price followed the green path as expected...until it didn't.
However, TLT decided to pull back much deeper than expected
With that said the move is still within the rules of our Heartbeat Trading System (we will do a post on how our system works soon)
This is setting up to be one of the best trades out there over the next 12-18 months....get ready!
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TLT is really taking its time finding its footing due to yields taking their sweet time topping.
With the break of last Thursday's low the 1-2 setup we were tracking was invalidated.
Instead what we got was a move lower which let us know that we are dealing with, at this point, a C wave of a zigzag lower (i.e. the white colored A-B-C for reference).
With our count adjusted we are again looking for a completed 1-2 setup (5 waves UP, 3 waves down) and then a subsequent break of the "1" level for a good indication that we are finally heading highe
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And here we go again
Still looking for a 1-2 setup to give us an indication the rally has started
A break of todays low would start the count over
Treasuries are showing signs of topping which supports the thesis that a rally in TLT is imminent
Good trading to all! Be patient!
Nota
As yields go, so goes TLT
Yields are pulling back and appear to have topped as predicted
This opens the door for TLT to gain momentum and begin its journey up
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Correction: the yellow box should read ''continued UPSIDE movement in TLT'''
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