TLT/Bond Entry for Hedge Against Stock Market

17 нояб. 2020 г.

Hedge against stock market. Setup has Risk/Reward Ratio of: 6 to first price target and 16 to second target. Recommended to take profit and raise stop along the way.

17 нояб. 2020 г.

Заметка

Fundamentals: Although I believe short to mid term, stocks, gold, cryptos will continue to perform well, the coming years will likely be a hard time for all assets once the wave of bankruptcies come. Here is a favorable entry point into the bond market to act as a hedge against down turn to come. During deflationary periods, money tends to flow from all assets to bonds.

Technicals: Recently TLT has broken out of the 13 year price channel. Currently we are back testing this channel and another bullish channel. If these trendlines hold, we should see a continuation in bonds. You can see in '08 and other periods of downturn how TLT reacted. We expect these levels to hold and the best accumulation zone will be around this area.

Trade: Setup has Risk/Reward Ratio of: 6 to first price target and 16 to second target. Recommended to take profit and raise stop loss along the way.