Software & Finance

Stocks - Add TBT, TMV to watch list

Aug 16, 2010,  CBOE - Volatility Index (VIX) closed today at 26.10. Even the market is currently in a short term correction phase, I expect the rally in long term Treasuries may end sooner than the equity market correction.

TLT - iShares Barclays 20+ Yr Treas.Bond closed today at 104.85 up by 2.5%. I think market is over reacting and buying more long dated Treasuries. But we are no where near a bubble.

However due to the recent surge in long dated Treasuries, the bear fund on long dated Treasuries are becoming very attractive.

TBT closed today at 32.45 and TMV closed today at 35.80. Both are getting very close to buy levels. If you are a speculative investor, either you can add a tiny amount of position on TBT and TMV or you can start watching the price movement on those stocks closely.

We can expect a short term bounce in TBT and TMV by around 8% - 12% shortly. It may not be a good long term investment at present.

It is important to note that these are leveraged ETFs. Leveraged ETFs may not be suitable for all kinds of investors as it posses high risk if the market direction is not favorable to you. Also refer to my earlier articles on leveraged ETFs.

FAZ is a buy - Posted on August 5, 2010

Leveraged ETFs- Posted on June 12, 2010

Option Price Calculator - Posted on June 05, 2010

Be careful when trading Leveraged ETFs!