TBT Pushing Towards Critical Resistance

The ProShares UltraShort 20+ Year Treasury (TBT) continues to trade firm, reflecting upward pressure on longer-term Treasury yield.

The TBT price structure is completing a large and powerful one-year base pattern that tells us a transition between the TBT bear and bull market is over, and that conditions are in place to support a directional up move.

While I do not know what the exact catalysts will be, my sense is that after a 33-year bear market in yield, the reasons for a counter-trend move will be many, but will mainly center around a loss of confidence in the efficacy of the United States Government as perceived by foreign sovereign and institutional investors, and not because the U.S. economy is experiencing runaway growth.

Whatever the reasons, the TBT is pushing up towards critical resistance at 68.00-70.00.


  Matched
x
  • In our live, interactive Trading Room, we identify trading opportunities in ...
  • Equity Index Futures
  • Index & Sector ETFs
  • Individual Stocks
  • Precious Metals
  • Energy
  • Forex
  • Treasuries
  • International Markets
  • And Much More
Join MPTrader Now!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!