TLT tripped a theoretical buy signal Tuesday, but we’ll wait for something better in the form of a ‘mechanical’ set-up to get long. It would begin with a decisive move past x, meaning to at least 124.00, followed by a pullback to x. Your bid at that price (123.58) should be tied to a 123.19 stop loss, o-c-o (one-order-cancels-the-other) with a 124.75 minimum objective. These instructions summarize most, although not all, of the rules of the ‘mechanical’ trade, a tactic we have not used before to swing-trade this vehicle. You should attempt the trade only if you are thoroughly familiar with the rules of the mechanical entry. _______ UPDATE (10:31 p.m. ET): TLT is in a bullish pattern (60m, A= 121.54 on 9/28) that projects to as high as 127.08 over the near term. However, the turgid price action of the last two days does not lend itself to an entry strategy that can be formulated half a day in advance. Seek real-time guidance in the chat room if you are eager to pounce. _______
UPDATE (October 11): Three steps up, two steps back. Zzzzzzzzzzz.
