The chart shown is the same one I’ve displayed here for months, and it has served us well, keeping us confidently focused on a big picture that remains quite bullish. We hold a 100-share tracking position with a cost basis of 114.32, implying a theoretical gain of a little more than $2000 per round lot. To augment the position now that TLT evidently has emerged from a lengthy consolidation, I’ll suggest bidding 134.71 for 300 shares (or 400 if you hold no position), stop 132.08. This is a ‘mechanical’ trade, suitable for beginners, but I would suggest that you not enter the bid before Wednesday, since TLT needs a couple more days of buoyancy above the red line for the opportunity to ripen. If it falls below the support, we can modify our entry strategy as needed. New subscribers to Rick’s Picks should play close attention to my updates for this vehicle, since the trade I would proffer is intended to defray the cost of your subscription. _______ UPDATE (June 20, 11:01 p.m. EDT): TLT crashed the midpoint support flagged above, negating the trade. Instead, let’s try bottom-fishing just above the midpoint Hidden Pivot, 133.22 (see inset). Bid 133.25, stop 133.17, for 300/400 shares, as above. If the stop is hit, try again, tightly stopped, just above d=131.88.
