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 is rising. 2. Prices have risen above the cloud (even after the pullback). 3. Prices are not trading above the thick red Conversion line, but I believe they will. 4. The thick red conversion line has fallen with the pullback, but should rise with the reversal (because it is way above the cloud). 5. The thick black line is the Ki jun-Sen baseline of the , which is rising and above the cloud. 6. The indicator on the top of the page is / , and this is oversold, (and likely to rise). 7. The top middle indicator is and it is likely near the end of the pullback, thus it should return to a strong reading (green over red). 8. The Top (bar-type) indicator measures the "phase energy" of the stock , and this has been STRONG and is pulling back to the zero line. 9. The green arrows are up (not shown). 10. Look to the far right on the chart, around $139.00. You will note a yellowish line on top (lips), with black dots above (teeth), and a blue line (jaw) below the black dots. Now, all three are crossing, correct? This is where I ask you to use your imagination and envision these three items as the "reversing jaws of a feeding alligator". This is a neutral indication because the jaws are closing and will likely be FEEDING in the uptrend after the Fibonacci pullback is completed.
I believe that TLT-has and will repeat the early June trend resumption. (Look on chart at the early June breakout at Fibonacci .618, red arrow).
As for TLT-why purchase these?
Two main reasons: 1-Because some markets are STILL at all-time highs-TLT is a likely "risk-off" trade for safety; and 2- As interest rates fall-TLT will likely benefit. Want proof? Look at the negative long term bond rates in Germany and Japan. Investors will likely come back to "yield", so with growth in the economy still in doubt, TLT-offers yield and some safety.
I would like to again close with three quotes from Alfred E. Neuman:
1. "A college jock is someone who minds his build instead of vice versa!"
2. "The only advantage to living in the past is that the rents are much cheaper!"
3. "Getting old is when a narrow waist and a broad mind change places!"
Good luck to you. Don.