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649bruno
Jun 19, 2016 7:46 PM

TLT Update: Bullish Trend Continues, Pullback To $132 Likely Long

iShares 20+ Year Treasury Bond ETFNASDAQ

Description

10 days ago I published a chart for TLT, predicting a breakout to the upside. The breakout did indeed happen.
With interest rates not rising I believe traders will chase yield - so TLT is a logical place to go.
I think TLT has begun a pullback to $132-$133. After this I feel the bullish trend will continue.
Let's review Don's TRADE-MAP approach:
TRADE = 1. T : Time and space (Fractals); 2. R : Repeating Cycles; 3. A : Advancing Trend; 4. D : Declining Trend; 5. E : Energy in Phase Forces.
.....MAP = 6. M : Momentum and Velocity; 7. A : Analysis of Structure; 8. P : Price Performance.
When I mention "Don's Top Ten Technicals", I use the elements of the "TRADE-MAP" approach:
1. The Ichimoku Cloud is rising. 2. Prices have risen quite a bit above the cloud (this is why a pullback is likely). 3. Prices are trading above the thick red Ichimoku Cloud Conversion line.
4. The thick red conversion line is also rising.
5. The thick black line is the Ki jun-Sen baseline of the Ichimoku Cloud , which is rising and above the cloud. 6. The indicator on the top of the page is RSI / Stochastic , and this is EXTREMELY strong (and likely to pull back).
7. The top middle indicator is vortex and it is strong (green over red). 8. The Top (bar-type) indicator measures the "phase energy" of the stock , and this is VERY STRONG. 9. The green fractal arrows are up (not shown). 10. Look to the far right on the chart, around $134.00. You will note a yellowish line on top (lips), with black dots below (teeth), and a blue line (jaw) below the black dots. Now, all three are rising, correct? This is where I ask you to use your imagination and envision these three items as the "separated jaws of a feeding alligator". This is a positive indication because the alligator is FEEDING in the uptrend.
This chart represents a 10 year bond yield of approximately 1.58%. Japan and Germany have negative yields, so I feel TLT will be in demand.
Why? As a safe haven for parked money, I feel TLT will keep rising (after a pull back to $132-$133). Consider this a "risk-off" trade.
Today I will close with a quote from Elizabeth Taylor: "Money is the best deodorant!".
I hope this has been helpful to you. May all of your trades go well. Don.
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