Morpheus Trading: Since our market timing model shifted out of “Buy” mode on November 7, we have been focused on trading ETFs with a low correlation to the direction of the stock market, rather than individual leading stocks.
Two days ago, we detailed 2 potential ETF trade setups with low to no correlation to overall stock market direction:Â ProShares UltraShort Yen – $YCS (a currency ETF) and Physical Palladium Shares – $PALL (a commodity ETF).
Today, we enter the world of fixed-income (bond) ETFs with a potential intermediate-term trade setup into ProShares UltraShort 20+ Year T-bond ($TBT).
Higher Interest Rates = Lower Bond Prices = A Tradeable Inverse Bond ETF
$TBT is a leveraged, inversely correlated ETF designed to move in the opposite direction (and double the percentage) of iShares 20+Year T-bond ($TLT).
As interest rates rise, the corresponding prices of the bonds decline (and vice versa).
If $TBT (which moves in the opposite direction of long-term bond prices) is poised to head higher, it means long bond prices are primed to move lower.
In turn, this means long-term interest rates may soon be headed higher.
Get it? Got it? Good!
Have long-term interest rates bottomed out? The “big picture” monthly and weekly charts of $TBT below suggest so.
Starting with the monthly chart, the double bottom pattern and subsequent, big-volume rally in May and June are two valid technical signs that a significant bottom has formed
Additionally, the 10-month moving average is also now sloping higher, and $TBT has been forming a bullish, tight-ranged consolidation over the past few months.
Drilling down to the shorter-term weekly chart pattern of $TBT, notice the major band of horizontal price support around the $71 area (highlighted in yellow).(...)Click here to continue reading the original ETFDailyNews.com article: Look For A Move Higher In The ProShares UltraShort Lehman 20+ Year (ETF)You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)
- Watching The ProShares UltraShort YEN ETF (YCS) For A Buy Entry
- Dow Jones Industrial Average: Why Stocks Can Move Higher For The Next 6 to 12 Months
- Why Uranium Prices Could Soon Move Higher
- 3 Reasons Stocks Could Move Significantly Higher
- Dow Jones Industrial Average: Bullish Trifecta Says Stocks Can Move Higher
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Telekurs USA
Postage Rates Bots go here