Apr 23

Bullish on Bonds

I am getting very strong technical signals to be long 20 year + duration Treasury Bonds (AMEX: TLT). Why? The bottom line for me is that while persistent inflationary pressures might be a thorn in the side of Chairman Bernanke, the fragile housing sector and rising energy prices could imply a more serious (than currently expected) slowdown in the U.S. economy, which the FOMC will be compelled to cushion-- regardless of some acceleration in the rate of inflation. See my updated chart analytics of the TLTs (Lehman 20 yr T-bond ETF), which we notice is poised to record a key upside reversal today...
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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!