TBT – decision time

well, underwater on TBT. I’ve shown my entry and man did that look like a NICE one .. but, it’s all probability. folks there was a TON of math coming together in /around 17-18 and it got wiped out. but, we have some support holding at the .707.

I’ll cut half my position on TBT if we lose 16.06 to the downside on a DAILY close below.

I’m still bullish RATES but … trade what you see, right? let’s give it a couple more days and then might need to throw half a towel into the ring on this one …

also, I’ve done the 30 year continuous futures contract INVERTED to show the same picture at TBT and to also see if there is some support that might be found on this one … hmmmmm. can’t win em’ all …

investing is like golf .. learn how to play out of the rough and the sand and you will be a good golfer! I’m still learning!

TBT update

last post on TBT: https://bartscharts.com/2021/06/20/tbt-3/

TBT has fallen into the bottom level of BUY zone and I’m long TBT in/around 18.

A lot going on w/ his chart but wanted to show you some “other” geometry that I was working … you see, we can make arcs and develop trend lines using the geometry of the chart but also, using the TIME and PRICE to define the vectors.

in this case, we take the all time low and draw the bottom of the square to intersect the “time” of the high. that will define our arcs and the square. the most important aspect of a square is the 45 degree angle (red line) and that line we then “copy” and “paste” to the bottom right of the first square and, well look at that … it intersects the LOW almost exactly. we also draw another square (and we can/will keep drawing these squares to find the trend lines running the show) and notice how the two 45 degree angles TIMED the low almost exactly .. (FWIW, this was a precise 1.618 AB =CD and a .618 retracement along w/ the same percentage corrective move that drove price into the all time low … came in around 21-22 percent decline.

so, while we do have the traditional “slap a retracement grid and look for the .618 retracement and a whole lot more …

take some time to study this chart .. try to understand it as it’s very helpful, indeed.

and, w/ all this work, I’ll consider it “wrong” if we get a daily close below 16.08 (.786 retracement)good weekend to everyone …

Bart

TBT – tricky

please see chart below … ultimately, it’s about risk control and how much risk one is willing to take.

our thesis is the 14-15 dollar low was a BIG low and we are very early in a multi-year (multi-decade (?)) rise in interest rates. yup, you just read that correctly …so to manage risk, one must understand that there is a potential that the trend has changed and we now have 3 different levels to enter …

here and now … GARTLEY 222 pattern complete at the low however, a nice gap down warns of lower prices. gaps into a level beg of caution …

19.14-19.42 …realistic w/ that gap down and lands basically on the top of the channel w/ polarity in play.

18-18.50 .. a lot of ratios and polarity principle (red line) … that looks good.

so, if the low today was the low but you don’t like the gap down then WAIT for a daily/weekly CLOSE above 21.50 for confirmation and BUY or if you do not think the low was today then WAIT for the two levels below.

either way, risk is basically in the 16-17 former cluster or the low at 14.28. that’s the true support zones. the lower breaks then the entire thesis is 100% wrong.

TBT update

the last time blogged about TBT was here: https://bartscharts.com/2020/03/08/tbt-buy-no-im-not-crazy/

doing an update as we can see the well defined downtrend that has been in place since, pretty much, inception in 2008.

if you followed some of the other Bond work on the site then you would know our thesis is there is a MAJOR HIGH in bonds (TBT is the inverse) so, we could be, perhaps, looking at the very beginning of a BIG run in TBT.

yes, interest rates to rise and, potentially, rise VERY fast …. hang on.

Bonds …time to pay attention

perfect TIME and PRICE patterns were hit today and, IF (a really big if) the count is correct we are on the verge of a very powerful move in the bonds ….

the thesis was that we had a VERY VERY large top in March of this year at multiple waves of degree. the pattern that hit today was one of those text book sell PATTERNS and the price reacted. here we go?

Asian Open – Fed cuts rates to zero and possible mirror image foldback NYSE Index

here’s last weeks post on the Asian Open and the YEN. level worked pretty well and we rallied pretty much all week. the USD vs YEN should stay below the 108.46 level and/or 109.866. if (the big if) this sell signal works then it ‘should’ put pressure on the equities:

even w/ the FED cutting rates take note of the key (intraday sell signal) on the bonds … intraday/15 minute chart. we have higher targets but this is the ‘first’ sell signal from the lows back on 3/13.

here’s the potential mirror image foldback I’m monitoring on the NYSE Index. Pretty symmetrical pattern. note the key trend line … that’s a BIG DEAL.

TBT – BUY (?) No, I’m not crazy UPDATE 06/08/2020

06/08/2020 UPDATE: breakout from a long base and inverted head and shoulders and appears to be going back to the neckline for the BUY. the “low” was right inside a tight “buy” zone depicted below.

______________________________________________________________________________________________

yes, I know that even thinking of BUYING TBT in this current market is insane BUT I really don’t care … it’s a BUY pattern that works or doesn’t. i did a quick blog on interest rates last week and those targets were SMOKED by the end of the week action but take a look below and then figure out a gameplan.

please see below:

we have a lot going on here:

  • Fundamental Frequency: take a ‘major’ high and low or vice versa and divide them. you now have the ‘fundamental frequency’ to define the move … see the purple dashed lines? those are fundamental frequency targets
  • Square the High: if you take the square root of the all time high you get 17.31 which is basically where we closed
  • Projections
    • the market likes to go ‘down’ around 65% per swing
    • additionally, if look at the foldback point we have the two big blue arrow s equal in their measured moved
  • Volume – MOST VOLUME EVER. capitulation low? Hmmmm

So, let’s don’t be a hero but … let’s see if the low was in place on Friday OR the market goes down a little more (TBT) into the buy zone of 14-15 and then wait for the market to EXPLODE off these levels and then try to get in .. if the market does a dead cat bounce and well, just goes pfffffffff … then stay away.