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Monday, August 8, 2011

Trend-Ending Pattern in TBTs


Purely from a near-term pattern perspective, the most recent down-leg in the ProShares UltraShort 20+ Year Treasury (TBT) from 28.43 to this morning's low at 26.69 appears to be carving out a falling wedge formation, which usually is a "trend-ending" pattern -- in this case, a down-trend ending pattern.

That said, however, let's also recognize that frequently the actual final price action culminates in a down-thrust to new lows, prior to a sudden, wicked upside reversal "out of the blue."

Such a scenario appears to be unfolding in the TBTs.

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