Time to get into the TBT – Reference point Set

Published on Wednesday, 25 August 2010 23:25 Written by The Trader Next Door

New York, Aug 25^th (TradersHuddle.com) - The ProShares UltraShort 20+ Year Treasury ETF (NYSE:TBT) had a big intraday reversal today after setting a new low pushing below the $30 psych level reaching $29.77 before reversing strongly to close the trading session at $30.85 or 0.86% higher than last Tuesday’s close.

The ProShares UltraShort 20+ Year Treasury ETF seeks twice the inverse of the daily performance of the Barclays Capital 20+ Year U.S. Treasury index. The fund normally invests at least 80% of assets to investments that, in combination, have economic characteristics that are the inverse to those of the index.

Smart money has been trying to time an entry into the TBT as they see a probable drop in the price of the bonds that continue to trade at record high prices, as the bubble continues to inflate. Doug Kaas , President of Palm Beach based hedge fund Seabreeze Partners announced a couple of days ago that he had been adding substantially to his position in the ProShares UltraShort 20+ Year Treasury ETF. The smart money is betting that there will be a counter trend move.

Yesterday, I wrote an article about the TBT, where I mentioned that in order to get involved there was the requirement to see buying materializing, instead of{module 212}Please Login to See Member Only Content -- It's Free

Long TBT