I am getting very strong technical signals to be long 20 year + duration Treasury Bonds (TLT). Why? The bottom line for me is that while persistent inflationary pressures might be a thorn in the side of Chairman Bernanke, the fragile housing sector and rising energy prices could imply a more serious than currently expected slowdown in the U.S. economy, which the FOMC will be compelled to cushion -- regardless of some acceleration in the rate of inflation. See my updated chart analytics of the TLTs (Lehman 20-year T-bond ETF), which we notice is poised to record a key upside reversal today.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.