Ishares Lehman 20yr (NYSE: TLT) Closes In On critical Support Says Market Timer Frank Kollar
May 7, 2008 (FinancialWire) (By Frank Kollar)
Shares of the exchange-traded fund Ishares Lehman 20yr (NYSE: TLT) are closing in on a long term support level that must hold if the ten-month rally in bonds is to survive.
The $90 level has stopped two corrections since December 2007. If this level holds again, we could see another run for the highs, around $97 a share.
If the $90 level fails to hold though, and this is also the 50% retracement for the entire June 2007 to March 2008 advance, we could see considerably lower lows.
A break of support would set up an initial downside target for TLT of $88.20.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy has a position in TLT.
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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