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New recovery high for Treasury Bond ETF

Mike Paulenoff
0 Comments| July 1, 2009

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Let’s notice that the ProShares UltraShort 20+ Year Treasury Bond ETF (NYSE: TBT) has recovered all of yesterday’s weakness and in fact has climbed to a marginal new recovery high this morning on the way to my next optimal target zone of 52.50/80. The better-than-expected ADB Employment ‘guestimate’ ahead of the government’s report tomorrow morning, in addition to the burst in oil prices (after last evening’s more-bullish-than-expected ADP inventory data), likely have scared the bond traders a bit –- against an already “excess supply” background. Increasingly the recent pattern and RSI configuration are looking like a rounded base formation in development. Tomorrow’s data could present the next catalyst for lower bond prices (rising interest rates).


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