Long TLT

I believe TLT is breaking out.

The main thesis I have been following is global slowdown is coming within the next 2 years.

If this occurs the Fed's hand will be forced to stimulate the economy by having constant or lowering rates.

From this we can derive that TLT must go up since rates and bonds are inversely related.

Finally with TLT breaking out of this wedge and the potential short squeeze could lead to a huge rally just like 2007-2008.

The rally from its bottom (May 2007) to the top (Dec 2008) is a 50% return.

* This information is not a recommendation to buy or sell. It is to be used for educational purposes only.