DailyPlay Treasury Bond ETF (TLT) – December 21st, 2021

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The bearish DailyPlay for Tuesday, December 21st is the 20+ Year Treasury Bond ETF (TLT). TLT has been relatively rangebound but has respected its resistance areas which provides a good opportunity for a credit spread. 

Technical View

• Price rallied back to the $151 resistance level but poor momentum indicates downside. 
• 1M trend has turned neutral from bullish yesterday.
• Bearish price action at resistance provides a good risk/reward bearish entry

Fundamental View

• Much more hawkish Fed looking to have an aggressive stance against inflation.  
• Several participants preferred raising interest rates faster than market anticipated timelines
• Inflation metrics continue to outpace initial forecasts. 

As this is a Credit Spread, look to take profits at 50% and cut losses at 100%:

• Take Profit: $0.83 Debit
• Stop Loss: $3.34 Debit

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