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Jesse Felder
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Jesse has been managing money for over 20 years. He began his professional career at Bear, Stearns & Co. and later co-founded a multi-billion-dollar hedge fund firm headquartered in Santa Monica, California. Today he works with a select group of clients at Felder & Company, LLC in Bend,... More
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  • Long Bonds Break the Downtrend 1 comment
    Mar 1, 2010 12:52 PM | about stocks: TLT, TBT

    TLT, the Long Treasury Bond ETF, broke the short-term downtrend on Friday. Dave Rosenberg wrote last week about investor demand for the bonds:


    While media-types and market pundits have continued to express their disdain for the U.S. bond market, yesterday’s 7-year note auction was met with strong investor demand (somebody is buying Treasuries and it’s not the Fed who have not added any to its cache in the past three months and all bond yields have done is range-trade even without that support).

    Despite negative sentiment and increasing supply, prices are not only holding up. They are improving as demand is increasing, too. They say stocks 'climb a wall of worry.' It looks as if bonds may do the same.

    The ETF is pulling back today to test the break of the downtrend. The 92 level now represents important resistance. Surmounting that level would be a pretty bullish development in the technical department.

    Disclosure: long TLT
    Themes: Bonds, Inflation, Deflation, Economy Stocks: TLT, TBT
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  • americanstkpickr
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    Comments (28) | Send Message
    I think you can only be trading, not investing, in intermediate and long bonds now. There may be a short gain, but its more like trading in a channel. It is fine for active traders, but the long term trend is still negative. Shorter term bonds have lower yields, but much less volatility.
    6 Mar 2010, 05:10 PM Reply Like
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