TLT is a bag full of technical events. First the long term trendline from July 11 is broken. Second, a toppy formation as defined by the horizontal line looks to be fulfilled. Third, a short term trend line is broken coming off the top formation. Fourth there is a downgap. The last horizontal line is support. Break that and the downtrend is for sure. We have been short here with TBT for awhile and think it a worthwhile trade. As always a stop of 5% is in order.
Here is a close up:
When the down gaps in gold and silver were covered we ran for cover and closed our gold and silver shorts. Regardless of our happy feet gold and silver are in downtrends. We might put the trades back on but admit to pique at being whipsawed.
There is certainly a signal there for a short trade. Gold and silver look the same to us.
We still like Apple and consider it radically oversold. The last few days are puzzling. But what is going on is clear. Value buyers and contrarians are trying to get a foothold in the stock — and will, eventually. We are going to look into call options and will report back.
Meanwhile boredom has set in since the clown circus has wrapped up for the moment in Washington. But JOY bama will take on the Irish and we should see some really good football.
Happy new year to our valued and esteemed readers!