TBT is rising indicating a sell off in 20 year US Treasuries.

Comment

Comment by BullBearGirl on October 26, 2009 at 8:48pm

Thanks for taking a look at it. If it is truly the beginning of the popping of the treasury bubble, it could be a very excellent trade. There's no telling though - maybe just something to watch.

Comment by Steven Vincent on October 26, 2009 at 7:17pm

Well now that I look at TBT on a longer time frame I can see that it is breaking out and looks to have made a longer term bottom. One could argue for an entry here. But I would trade it for itself, not as a proxy for the dollar. I'm not sure what kind of percentage move we could get out of it. I am fairly certain however that the move in the dollar should be very powerful if it does materialize.

Comment by BullBearGirl on October 26, 2009 at 6:51pm

Thanks Steven. It had me pretty confused.

Comment by Steven Vincent on October 26, 2009 at 6:45pm

The relationship between the dollar and treasuries is never one-to-one. In fact it is hard to use one to trade the other. You need to just look at the technical setup on treasuries and trade that. I haven;t studied it closely but from looking at the TBT chart I do not see any trading opportunity present there.

Comment by BullBearGirl on October 26, 2009 at 2:41pm

Sorry - I jumped the gun on that one. I have now sold my TBT

Comment by BullBearGirl on October 26, 2009 at 2:40pm

Maybe not such a good call as TBT is now running inverse to the dollar.