March 9, 2007


TLT, shown above (click to enlarge), has on the other hand behaved according to script ("safely on its way to 90") and even spiked above 91 on 2/27, that most turbulent of trading days (it was the late 90s all over again, computer glitches and all). We're now in the middle of a holding consolidation pattern, what looks to be a pennant. So I would say stay long, this thing could go testing that 91.80 high established on 12/1/06. However should the pennant break down, all bets would be off. A good exit point (and sell stop) would be below the 20-day simple moving average at around 88.9.

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