Earlier this month the “Power of the Pattern” was reflecting what looked liked… Twin Peaks were forming in TLT. (see post here) Shared at the time the patterns weren’t bullish and if support gave way sellers would step in.
Since that time, TLT has over 8% in less than a month. Below is an updated chart on TLT…
CLICK ON CHART TO ENLARGE
TLT is nearing shorter- term support and about to fill a gap. Since TLT has declined over 10% since its “Twin Peaks” highs, a bounce is due around the gap fill, yet bond investors have to remain well aware that an unfilled gap remains in place around the $95 price level!
Thanks Chris. Regardless of ST movements, the CRB did indeed complete a 61.8% retrace…one has to be bullish on China/EM’s to be bullish on commodities after that…I am not.
RM…Dollar and TLT support share the next good move? See the CRX index today? Ouch, down over 3%.
Bond bounce = Dollar bounce = Equities Bull Trap = GE2
Thanks…I knew that…what now?
RM…Copper had its worst single month in 25 years last month…not sure of the word to describe the decline, other than not good if long. Members have been long copper for two weeks and boy has that been off the charts…picked up copper due to the decline and support (see quiz that led us to go long copper)
Thanks! I agree. Probably the most bullish thing for equities out there.
So which is it? TLT crash or commodity crash?????