New Upleg For TLT
This morning’s surge in the iShares Barclays 20+ Year Treas Bond (NYSE: TLT) reflects greater-than-expected economic deceleration from Q2 to the revised (higher) Q1, as well as disappointing figures for personal consumption, which has triggered a fierce bout of short-covering.
Since yesterday’s upside reversal off of a marginal new low off the July 1 high, the TLT has recovered 50% of its monthly loss and technically argues that a major correction in a still-intact larger bull run is complete — and that a new upleg has commenced.
We have discussed in the past that my optimal intermediate-term target zone in the TLT’s is 104 to as high as 107. Unless and until this week’s low at 97.92 is violated, the bullish outlook will remain my preferred scenario. 
Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.
This Market Commentary provided by:
www.TigerSharkTrading.com
Tiger Shark Trading is a destination web site for savvy traders and provides daily commentary from some of the world’s top professional traders. Check it out.
It should not be assumed that the methods, techniques, or indicators presented on these websites will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these websites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, Tiger Shark Publishing LLC, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.
