ETFs of the Week: TLT (iShares 20+ Year Treasury Bond ETF)

Bonds have sold off hard the last few weeks. The US 10yr is now yielding 2.35% and the 30yr 3.0%.  A couple points here: 1. just like the major US indices being overbought, bonds are now oversold with a RSI of 25.  2. There is a support area currently in the TLT ETF at these level with VPOCs (Virgin Point of Controls) further below.  

Conclusion: Due to price support and the current level of the RSI I think that we may spend some time at these levels and may even see a short term bounce before heading lower.  I remain short the TLT Dec 117/ 121 put spread to take advantage of a possible short term consolidation.

TLT11.29.PNG

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