Stocks - TBT, TMV are buy - reiterate
Aug 30, 2010, CBOE - Volatility Index (VIX) closed today at 27.21 up by 11.29%. 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 107.36. TLT is in the process of topping out or might be already in the correction phase.
It is a good idea to long TBT (closed today at 30.76) and TMV (closed today at 32.99). Both are good Buys at these levels.
We can expect a good bounce in TBT and TMV by around 10% - 15% shortly. However 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