Long Term Treasury Bonds: Very Positive Backdrop

When
I last looked at long term Treasury bonds (click here and here), I stated the following:  

"While
the bottom for TLT (or top for TBT and yields) appears to be in, it is not
clear whether this will lead to a sustainable move that would cause price to
break the down sloping trend line seen in figure 2.  My hesitation in
making the call is my (yet to be presented) intermarket bond model.  This
model is still bearish on bonds, but it is not unusual for it to lag the
technicals at this point.  If the model turns bullish on bonds while the
technical set up is developing, then I will have greater confidence in the
sustainability of this price move."  

At
the end of last week, the inter market bond model has turned bullish on
bonds.  The fundamental and technical pictures are now supporting a higher
move in bond prices.

{click on images to make larger}

Long Term Treasury Bonds

Comments

[AR15AU]

I guess when a homeless man is eating out of a dumpster, finding a half of a peanut butter sandwhich is considered very positive.

[4shzl]

Normally, I'd want to be short a flight-to-"quality" rally, but with the global economy facing as many dislocations as it currently does -- not this time.

[malusDiaz]

And will you be here to tell people to bail the fuck out when it breaks down?

90 is the edge of the cliff, haven't even regains the Weekly EMAs @ 95, then we sell off again.

Why? Because its all fucking computer algos gone Wild! With Other Peoples Money!!!

[sbenard]

Bond bazaar or bond bizarre?