Monday, October 18, 2010

That's it for bonds?

 As you can see, I like using a long MACD, see what others do not. It has definitely lost al momentum. As far as trend, TLT the 20 year treasury bond fund has officially made lower highs and lower lows putting it in a down trend. Today it's stuck at resistance, gap resistance as well. Look at the recent red volume.

Here is TLT the long bond fund on a daily 3C showing a very negative divergence.
 This is the UltraShort version of the same showing the opposite, a positive divergence.

It seems that the Fed may be preoccupied with buying MBS after all. This would explain why Pimco has gone on margin buying MBS.

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