Seeking Alpha

bassetti's  Instablog

Send Message
W.H.C. (Charles) Bassetti Managing Partner, john magee technical analysis::delphic options research ltd Summary of Experience 1960 Beginning of trading experience as private investor. 1963 Became client and student of John Magee, a very long term relationship. 1964-72 Venture capital investing... More
My company:
john magee technical analysis
My blog:
john magee technical analysis::dor ltd
My book:
Technical Analysis of Stock Trends, 10th Edition
  • Mother Of All Head & Shoulders Tops In Bonds 0 comments
    Jun 10, 2013 8:32 PM | about stocks: TLT

    (click to enlarge)

    We have been saying for quite a while that bonds were a trap waiting to spring, and have been short for sometime. For family 529 accounts we just booted all the bond funds and switched to stock funds. (Unfortunately we can't manage the capital ourselves. That would put the fund industry out of business, and they do a lot of business with Congress.) Then our colleague Blair Cummins pointed out the following chart to us. The break of the 15 month trendline would be enough to liquidate positions, and this picture completes the picture.

    (click to enlarge)

    Looked at, at this scale (@humongous) (or @googopolous) the implications google the mind. It is more difficult to see in the top chart, but it is there. A monstrous top more than 20 months long. Here below the PnF chart, which because of the idiosyncrasies of point and figure charting does not see the potential disaster. It sees only the last leg of the formation.

    (click to enlarge)(sorry no link)

    From that it projects a target of 106 in TLT. That, of course, could be the tip of the iceberg. (The one that sank the Titanic.)

    Oh, and re the Hindenburg. If you think about it the Hindenburg was just a big bubble with a thick skin.

    Disclosure: I am short TLT.

Back To bassetti's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Most Commented
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.