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Subject:  Trading TLT Date:  1/14/2013  1:06 PM
Author:  globalist2013 Number:  34668 of 35924

Several analysts are arguing that going long the long bond is still a viable trade. They argue that ‘price’ --not the current low coupons for Treasuries-- is the important fact, and they expect prices to rise, creating cap-gains. If they are right, going long the long bond --perhaps via an ETF like iShares Barclays 20+ Year Treas Bond, (TLT)-- isn’t the only way the trade could be expressed. Stocks could be shorted, as the linked, 3-month chart suggests, for an equivalent effect. But let’s see if the trade could be put on as they suggest it. So let’s create a quick-n-dirty trading system for TLT.

Charts for stocks, ETFs, and mutual funds can be created at several places on the web. But the best place is They offer a rich feature set, plus the ability to create linkable charts. So let’s do our work there for today. This is what a default chart for TLT would look like. That’s messy, incomprehensible crap, right? So let’s clean it up. The first thing to do is to get right of the moving averages.