Category Archives: Trade Alerts

Tracking Treasuries

As you're aware, the economy isn't doing so hot and our President believes that we need to infuse the economy with new cash to stimulate growth. (I also agree on that basic premise, although I'd target spending and policy to encourage urban renewal and sustainability… More on that at commonsensefreshideas.com.) With new cash comes devaluation of our USD and a correlating drop in the value of US Treasuries. Hence, the following trade alert.

We're tracking treasury tickers TBT and TLT, both of which are treasury ETFs. TLT, however, is an ultra-short treasury ETF, which rises in value as the underlying security, treasuries, decline in value. During times in which the treasury market is taking a hit and may continue to do so, if you're not approved to short stocks or simply prefer to go long (buy side), then play TLT. As treasuries go down in value, TLT will go up.

Here are the triggers:

  1. TBT closes above $49.56 to upside, buy
  2. TLT breaks below $100.46, sell short

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