ProShares Short 20+ Year Treasury ETF (NYSE: TBF) — This fund moves inverse to the daily performance of the Barclays Capital 20+ Year U.S. Treasury Bond Index.
The trend for Treasury prices is sharply down, supported by Fed pressure to increase interest rates through the continued inflationary policies of QE2. Since history has shown that it is usually better to go with the Fed’s policies rather than against them, this appears to be an investment that offsets the impact of increasing the money supply, which in turn, leads to lower bond prices.
TBF consolidated with a saucer for 11 months before a breakout at $45.50. Note the increase in buying volume and the cross of the 50-day moving average through the 200-day moving average (golden cross), which signifies a bullish long-term change in trend.
The target is $50, but buyers should be prepared to hold TBF as a hedge against lower bond prices and higher interest rates.
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