The Lehman 20-Year T-Bond ETF (TLT) closed about 80 cents off their earlier highs at 93.87 in what turned out to be a vertical panic-like move, the strength of which certainly surprised me (yesterday afternoon, in particular). The target of 94.00 did not surprise me, just the speed that it was achieved. I remain very bullish on the TLTs for upside continuation to new highs above 96.36 established on November 26 during the heart of the sub-prime crisis. In any case, today's action suggests strongly that the TLTs should be entering a near-term correction -- into the 92.60/20 area -- prior to the next loop to the upside towards new highs.



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.