Oct 17

Bonds, TLT's, Goosed to the Upside

by Mike Paulenoff, Tue October 17th, 2006

There is a story making the rounds that the forthcoming release of the NAHB Housing Market Index (1 PM ET) will show a decline of 10 points, to an index reading of 20, and that once the bond vigilantes got a hold of the rumor, they were responsible for goosing bond prices and the TLT's to the upside. To refresh our memories, the Sept. figure of 30 was the lowest reading since 1991.. so, I cannot imagine how far we would have to go back to find a 20 reading-- 1980/81 if the data are available?

In any case, today's CORE PPI, weaker than expected Industrial Production (and Cap. Util), and possibly a nasty reading in the NAHB should have the effect of throwing some ice cold water on the Goldilocks crowd... With that in mind, let's take a look at my updated daily chart analytics of the TLT's...

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Chart

Mike Paulenoff is author of www.MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!