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

Three Charts to Watch for an “All Clear”...

May 8, 2025

Week Ahead: While Nifty Consolidates, Keep Head Above...

October 13, 2024

What Seasonality Charts Reveal About the Top Sectors...

November 13, 2024

Election Aftermath: Unleashing Profitable Small Cap Stocks

November 8, 2024

Top 10 Charts to Watch for in February...

February 8, 2025

Will the S&P 500 Break 5000 by September?

July 31, 2024

One MAJOR Concern About Friday’s Rally

June 3, 2024

Hedging the S&P All-Time Highs With Options

May 24, 2024

Astronomical Daze

June 22, 2024

A Sector Rotation Dilemma …

September 21, 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

    • Five possible futures for Middle East from renaissance to rockets

      October 20, 2025
    • ‘Untold damage’: Global assisted suicide movement targets children

      October 20, 2025
    • Two IDF soldiers killed amid ‘severe’ ceasefire violation, ‘it’s not the last,’ analyst says

      October 20, 2025
    • Is Trump’s ‘heat’ on Venezuela the start of a wider campaign for regime change?

      October 20, 2025
    • DAN GAINOR: The England we love is lost. If we don’t change, America will be, too

      October 20, 2025

    Categories

    • Business (1,120)
    • Investing (3,290)
    • Politics (4,012)
    • 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