TBT 3-Year Declining Wedge Due To Be Broken

 

TBT is the ProShares UltraShort 20+ Year Treasury ET, which "seeks daily investment results, before fees and expenses, that correspond to two times the inverse (-2x) of the daily performance of the Barclays U.S. 20+ Year Treasury Bond Index."

Per its chart below, there's a 3-year declining wedge formation in the pricing of TBT.  This type of formation tends to resolve upward.  Furthermore, bullish sentiment in long-term bonds is at levels commensurate with all-time highs and long-term reversals.

If buying TBT, one speculates that the multi-decade bull market in long bonds will soon reverse.  This should prove to be a long-term holding, and our initial stop suggestion is at $29.90 in an attempt to cap risk around 12.5% as TBT closed today at $34.15

News Item: Goldman Sachs Expects Steep Drop-off In U.S. Demand For Stocks

 

 

 

 

 



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