Ishares Lehman 20 Yr (AMEX: TLT) Pauses At Resistance Says Market Timer Frank Kollar
September 7, 2007 (FinancialWire) (By Frank Kollar)
Bonds have been on a tear since mid-June, but are now at a resistance level that is likely to result in a pullback over the coming days and weeks.
Changes in bond prices can easily be traded via the exchange-traded fund Ishares Lehman 20 Yr (AMEX: TLT). TLT rallied through June and July but then topped out in early August when it hit the Fib 61.8% resistance level at $87.80.
After a three-week correction, TLT again reached the 61.8% resistance level and this time closed decisively above it thus forecasting a run to at least $89.32, the next resistance level. On Wednesday of this week, TLT closed just below this resistance level and on Thursday pulled back. This is a critical point in this three-month bond rally and we will likely see profit taking and a pullback.
However, a decisive close above $89.32 would forecast a run to the March highs at $90.56 and potentially to new highs.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy currently has a position in TLT.
Follow your strategy and adhere to money management rules to protect capital. If you do not have money management rules, give FibTimer.com (http://www.fibtimer.com) a call. The surest way to lose money in the stock market is to trade without a plan.
Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.
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