The Lehman 20-year Treasury Bond ETF ( TLT) continues to grind to new 4-month highs. See our recent daily chart, in which we note that our near- and intermediate-term work continue to "warn" us to expect another surge in the TLT that thrusts prices towards 89, which appears to be gaining upside strength as we speak. The weakness in the equity indices hardly can be considered acute, yet the long end of the yield curve is ratching down (lower rates) to reflect expectations of…what? An economic slowdown? Additional concerns about the housing and home building markets? About another round of dislocations in financial institutions and hedge funds? Maybe all of the above. Be that as it may, the TLT's are attempting to break out on the upside, above the March-August resistance line and towards a confrontation with the moderately negative 200 DMA. Let's expect upside continuation towards my optimal target zone in the vicinity of 89.



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.