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Let’s notice that the ProShares UltraShort 20+ Year Treasury Bond ETF (NYSE: TBT) has recovered all of yesterday’s weakness and in fact has climbed to a marginal new recovery high this morning on the way to my next optimal target zone of 52.50/80. The better-than-expected ADB Employment guestimate ahead of the government’s report tomorrow morning, in addition to the burst in oil prices (after last evening’s more-bullish-than-expected ADP inventory data), likely have scared the bond traders a bit –- against an already “excess supply” background. Increasingly the recent pattern and RSI configuration are looking like a rounded base formation in development. Tomorrow’s data could present the next catalyst for lower bond prices (rising interest rates).
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!
