Two Ways to Play: The Lo-o-o-o-ong Bond
Strengthen your portfolio in good times and bad.
The Lo-o-o-o-ong Bond
Without question, Treasuries have been in great demand as a safe haven for risk averse investors, that despite a multitude of bailouts and government rescues that will likely send the federal deficit soaring. Minyanville Professor Kevin Depew recently took a look at the 30-year Treasury, AKA "the Long Bond," through the lens of Tom DeMark's price exhaustion techniques. According to Depew, the long bond may, in fact, be nearing at least a short-term top.
In a related story, Minyan Peter touched on what may be in store in the coming years as a result of massive government intervention and spending in "The No-No Years."
From the Bull: Treasury bulls, or those who believe there are few safe alternatives among risk assets, can consider the iShares Barclays 20+-Year Bond Fund ETF (TLT).
From the Bear Cave: According to Depew, a "perfected" DeMark TD-Sequential Sell Setup can only happen if the long bond on the weekly chart makes a new high next week or the following week, above 143. At that point bears can consider selling the long bond, or investors should consider at that point reducing Treasury exposure.
Quick Check Around the World
Asian trading closed with the Hang Seng -.26%, Sensex –1.22%, Taiwan +.39% and Shanghai –1.76%.
Glancing towards Europe, we see the CAC -.78%, FTSE -.69% and most other indices closed.
As of 8:15 a.m. EST, S&P futures are trading +1 to 859.60, and Nasdaq futures are +1 to 1185.50.
A Look At Commodities
Crude oil is trading –1.72 to 37.25 Gold is unch at 838.20. Silver is +0.2 to 10.280, and copper is +.0085 to 128.95.
The dollar index is -0.195 to 81.045.
On the Radar
U.S. Markets Close at 1 pm ET.
07:00 MBA Mortgage Applications
07:00 Personal Income 0.0%
08:30 Personal Spending -0.7%
08:30 PCE Deflator 1.5%
08:30 PCE Core 0.0%
08:30 Durable Goods -3.0%
Click here for the full trading radar.
Good luck today!
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