Weekend Jan 14, 2023
TLT is a fund of 20 year bonds and a great proxy for the bond markket. It peaked along with stocks the end of 2022.
the decline in bond prices took one third of the value of TLT. It bottomed lat October. Since then an A B C pattern or Wave 2 is forming. this is a weekly chart. Price is again approaching the 34 week MA.
TBF is a fund that shorts the same bond market, so its price rises as TLT falls. Not surprisingly it is testing its 34 week MA.
A ratio chart of TBF to TLT looks the same on a weekly basis. the daily ratio chart favoring TBF has not bottomed yet.
I have profits in the closed end munis. And wonder how long they will stay in advanced stage. It may be that we can start edging into TBF while holidng the muni bnds, TBF then acting as a hedge against a decline in bond prices.
AMZN is a good proxy stock for the overall market. I had a 100 target adn that looks pretty good only two dollars away. That makes this a 18-20 point rally.
Is here enough strength to fill the gap to 110, not sure let's watch this week. /too late to buy now.
Comments