TLT, the 20-Year Treasury Bond ETF, gapped down 2% this morning and in so doing has generated another Sell Signal, following up on the initial Sell on June 4th. Lower bond prices means higher interest rates, exact opposite the stated goal of the Fed. It is foolhardy to challenge the Fed on their home turf. So we will: Repeat Sell Signal: TLT (160.15) Target by expiration: $140.00 Option: August 21st $160P (4.90-5.00) Trading Note The Dow opened +1,000 pts and has given about half of that up. The Nasdaq 100 traded above 10,000 and just as it did last week, promptly sold off (currently 9965). On the chart below I've drawn two red parallel lines. Whichever one price breaks through first will set the trend for the next two weeks and provide an aggressive trade via QQQ puts or calls. This is not a "System" trade, just a simple low risk high reward trade. Use the line not broken as a stop.
