TLT Follow Up

The $USD is getting slammed this morning, I've seen it called a flash crash and how there was no fundamental catalyst or news. There doesn't have to be, its counter trend move is over.

We should see some interesting correlations develop, but for now on this morning's volume, I decided not to push TLT puts any further, not that I think they will just up and reverse to a counter trend rally on the upside, that remains to be seen whether the charts improve as they should, but I do like getting out of an option on momentum.

Here's the P/L for the TLT 6/19 $122 Put position...

At a cost basis of $2.23 and a fill of $3.10, the P/L came out to +39%.

A counter trend rally in treasuries/TLT would be a monster move so we'll be looking for signs of accumulation from this morning's volume dump.

 TLT since last Friday's negative divergence in to the close after a gap up sending it lower, nearly parabolic yesterday, I'd say parabolic this morning with huge volume as you can see above.

This is the intraday 30 year 1 min Treasury futures with a positive divergence so it looks like the initial signs are that the large early volume WAS accumulated which may set up our next position in TLT, possibly long. I'll let you know how it is coming along through the day.