I'm going to be real honest with you here. I know nothing about bonds. I've never owned any bonds or bond funds.
Never studied bond. Don't really understand how they work.... yeild... rate... price... yadda,yadda, yadda.....
I have a VERY basic understanding of bonds.
But, what I do know is, there's a bubble forming in the bond market. People will accept NOTHING just to protect their capital.
And, when people decide to get back into equities big time, bonds are going to crash. And when they crash, TBT is going to explode to the up-side.
How high will it go? Well, I think it will do like what DTO is doing.
I would draw trendlines on TBT and also TLT, more importantly, because it's been around a lot longer. TBT will move in the opposite direction of TLT.
I'm actually hoping TBT goes down again Friday, since I can;t watch the markets tomorrow. If it does, more than likely I'll buy it on Monday, or quite possibly late tomorrow, like 3:55 p.m.
The longer it stays down, the better the up-side move will be.
48.20 is the target I'm looking for on the coming 'pop'.
Watch the rsi. ;~)
All jmho,
dieselfuel
