Sport Investors League
  • Politics
  • Stocks
  • Investing
  • Business

Sport Investors League

  • Politics
  • Stocks
  • Investing
  • Business
Stocks

TLT Turns the Corner and Starts to Lead

by admin August 10, 2024
August 10, 2024
TLT Turns the Corner and Starts to Lead

The 20+ Yr Treasury Bond ETF (TLT) is turning the corner as a long-term trend indicator turns bullish and price extends on a breakout. TLT is also starting to outperform the S&P 500 EW ETF (RSP), for the first time in a long time.

The first chart shows TLT with the 5-day SMA (green), the 200-day SMA (red) and the Percent above MA (5,200,1) in the lower window. This indicator shows the percentage difference between the 5 and 200 day SMAs. Note that I placed signal thresholds at +3% and -3%. This means I want the 5-day SMA to be at least 3% above/below the 200-day SMA for a signal.

We cannot totally eliminate whipsaws, but we can reduce them with smoothing and signal thresholds. In the window above, we can see the indicator turning green and red as the 5-day crosses above/below the 200-day. There were at 21 crosses over the last four years. There were only three crosses using the 3% signal thresholds. Note that a 3% signal triggers with a move above 3% and remains valid until a move below -3%. Percent above MA(5,200,1) exceeded +3% this week to signal the start of a long-term uptrend. Note that Percent above MA is one of 11 indicators in the TIP Indicator Edge Plugin (here).

As featured at TrendInvestorPro, the next chart shows TLT with some classic technical analysis at work, and a breakout to boot. First, TLT surged some 22% from late October to December. It then declined with a falling channel that retraced around 2/3 of this advance. TLT managed to hold well above the October low and break out of the channel. This higher low shows buying pressure stepping in at higher prices (above the October low). The breakout signals a continuation of the 22% advance and targets a move to the next resistance zone (109). Support is set at 90.

We are also seeing TLT outperform the S&P 500 EW ETF (RSP) for the first time in over a year. The indicator window shows the TLT/RSP ratio flattening out in spring-summer and breaking above its June high (red line). It also broke the 200-day SMA. Admittedly, the relative breakout is still a work in progress. The breakout on the price chart, however, looks solid.

We featured the breakout in TLT over a week ago and will continue to monitor it at TrendInvestorPro. This week we covered the significance of a surging VIX and widening yield spreads. We also covered deteriorating breadth and put forth a target zone for SPY going forward. Click here for immediate access.

//////////////////////////////////////////////////

0
FacebookTwitterGoogle +Pinterest
previous post
How the PROS Time Entry Points
next post
Stocks close higher, clawing back some losses from Monday’s sell-off

Related Posts

Here’s My Long-Term Perspective on U.S. Stocks

May 8, 2024

SCTR Report: The Palantir Trade Follow-Up—Transform Insights into...

November 20, 2024

The SCTR Report: Carvana’s Gain Makes It Worth...

September 20, 2024

S&P 500 Earnings 2024 Q3: Still Overvalued

January 13, 2025

SCTR Report: Carvana Stock Skyrockets, Hits a New...

October 9, 2024

Equities Remain in Strong “Go” Trend as Tech...

December 10, 2024

Equities Hit New All-Time Highs as Communications Joins...

June 11, 2024

Equities Stay Strong as Technology Returns to Out-Performance

October 15, 2024

S&P 500 Breakout: Here to STAY or Heading...

May 22, 2024

Cybersecurity ETF Comes to Life with New Trending...

October 12, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent

    • Trump demands NATO allies halt Russian oil purchases before new US sanctions

      September 16, 2025
    • Ilhan Omar’s committee assignments under threat after ‘disparaging Charlie Kirk’s legacy’

      September 16, 2025
    • Maurene Comey sues DOJ for ‘unlawful’ firing, demands reinstatement

      September 16, 2025
    • Israel’s military chief backs Witkoff plan over Netanyahu’s Gaza takeover, sources say

      September 16, 2025
    • White House pushes for $58M security increase in wake of Kirk assassination

      September 16, 2025

    Categories

    • Business (1,105)
    • Investing (3,044)
    • Politics (3,717)
    • Stocks (1,155)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sportinvestorsleague.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 sportinvestorsleague.com | All Rights Reserved