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TLT - 20 YR US GOV'T BONDS - Repeating the last correction

The current pullback in TLT brings it back by a similar amount as the last correction in October-November.

Given that rates are far lower in Non-US Gov't bond markets, there may still be capital flowing out of foreign bond markets and searching for a higher return in US Gov't bond markets. I would continue to trade the TLT on the long side looking for a retest of the highest weekly trading range.

The MTPC indicator plots a green box around the weekly range of an up-week and red-box around the weekly range of a down-week. The volume indicator/profile on the right side shows you that very little volume traded in the 128 area, which makes that level a strong level of support. Why? Because there were so many buyers at that level that very little volume traded because of news and fundamental information. The buyers overwhelmed the sellers, making it a key level. This shows you that 128 is an extremely important price level for TLT and one that needs to hold to remain bullish.

Tim 130.40 last 11:52AM 2/12/2015

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