I’m tracking 100 shares with a cost basis of 114.32 that reflects profits taken a while back on three quarters of the original position. The theoretical gain at these levels amounts to more than $1800, but we are shooting for significantly more than that and may augment the position if a juicy opportunity like the one that got us aboard in the first place should arise. TLT’s thrust past p=132.58 on Thursday (see inset) is encouraging, to say the least, since it opens up a path to 135.26 over the near term, and thence to 137.94. Traders can use p or p2 to get long ‘mechanically’, provided you understand the rules governing this type of trade. This is the kind of rally that is tailor-made for the ‘mechanical’ buy. ______ UPDATE (April 19, 8:36 p.m. ET): Let’s test the water with a bottom-fishing bid for 400 shares at 129.66. Use a 129.59 stop-loss. The relevant pattern is shown in the chart, a new one. _______ UPDATE (April 22, 2:25 a.m.): The downdraft of the last two days triggered the bid, then the stop, generating a theoretical loss of 0.28. Imputing it to our tracking position of 100 shares effectively raises our cost basis to 114.60. _______ UPDATE (May 8, 7:57 p.m. ET): I’ve updated the chart with a longer-term perspective that shows TLT’s ups and down over the last several months as part of a bullish picture that portends much higher prices. Considering the size of the leap that appears to be in the offing, a lengthy consolidation period is to be expected.
