Looks like deaccumulation on the TLT 4hour chart.
Volume is a little higher than I would want it to be, I would normally want volume just below the last two trading sessions not necessarily as much as it is.
But still looks good enough for a kick overnight trade.
I already entered a short earlier today, Sept 16 puts 147 strike price I believe.
Evening traders, been a while since I shared my thoughts.
I'm looking to enter short on TLT, as it's approaching historic over-extension.
Let's dive in at the key points:
1) It's gapped up and will likely close outside the BB, should lead to down movement next week.
2) Short term squeeze has begun to trigger, this week is likely the top.
3) RSI is overbought...
Spikes in treasury prices as long term rates fall off a cliff sets up an interesting contrarian trade opportunity. The entry to short treasuries here with options (short term: put debit spread or call credit spreads) look appetizing at near all time highs. RSI combined with trend lines offer a technical calculation of "top". Trade at your risk, I'm currently short...