MPTrader Mid-Day Minute RSS Feed

 << July
2008
 >> 
SMTWTFS
2930 12345
6 7 8 9 10 1112
13 14 15 16 17 1819
20 21 22 23 24 2526
27 28 293031 
Share Our Content:
Tue Jul 1st 2008
Treasuries May Be Ending Recovery Rally Phase
By Mike Paulenoff, www.MPTrader.com

Once again perhaps we can derive a message from the action of the Lehman 20-Year T-Bond ETF (AMEX: TLT), which today failed to climb above yesterday's 6-week recovery high at 92.81 in what I thought would be an extension of the "flight to safety" syndrome in an otherwise treacherous equity market. No such action has taken place thus far this morning. In fact, the TLTs have pivoted to the downside just below the 50% recovery resistance plateau of the prior March-June decline from 97.75 to 88.60- - which suggests that the TLTs just might be ending a recovery rally phase ahead of a resumption of weakness within the dominant downtrend that has been in force since the Jan 22 peak at 98.16 -- and which implies that higher U.S. interest rates will be forthcoming in the months ahead -- strong economy or not.

For more of Mike Paulenoff, sign up for a Free 15-Day Trial to his ETF Trading Diary.

Receive Our Free Email Newsletters*:
Email
* In submitting this form you agree to our permission/privacy statement.

color_line

© 2002-2008 MPTrader.com, an AdviceTrade publication.  All rights reserved. Any publication, distribution, retransmission or reproduction of information or data contained on this Web site without written consent from MPTrader is prohibited. See our disclaimer.