I posted the chart below on August the 29th, highlighting that the “Power of the Pattern” was suggesting that bonds had reached a peak in elevation and now was the time to “Score on defense and to purchase TBF.    (see post here) Since the first of September, TLT has declined almost 20%!

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Bonds bulls were all over the place and going against this rally was hard for many to do.  Where are the bond bulls now? Buying bonds (TLT) hard to do now?  I suspect so, yet the “Power of the Pattern” is suggesting now is the time to take a small risk in TLT.

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Game Plan….Buying TLT with a tight stop. I am going to set the stop a fraction less than 2%.

 Any bond bulls out there?  Can understand why sentiment on the bonds reflects only 5% bond bulls right now, the opposite of the first of September when bond bulls stood at 95%!