Wednesday, July 13, 2016

TLT Volatility Accelerates...07.13.16

TLT is acting like a bug in a hot frying pan...after yesterday dropping 2% it rebounded 75% of yesterday's move on almost equal volume.
There are two camps of thought on the near and long term future of treasuries and some of the biggest names in the bond business have radically different forecasts.
The Mosaic forecasting models for TLT have held their ground although the mean reversion mode, which well outperformed the buy and hold benchmark for thr first 6 months of the year, has seen its timing edge reduced to near parity with a non-stopped TLT model.
The 130 minute Bollinger Band study of TLT below shows the dramatic reversals in momentum.