Stocks - TBT, TMV are Hold / Sell
Sep 3, 2010, CBOE - Volatility Index (VIX) is trading at 21.81 and S&P 500 index is trading just above 1100 around 1:00 PM EDT. This low level of fear gauge giving as a sell signal and to go long on bear ETFs.
TLT - iShares Barclays 20+ Yr Treas.Bond bottomed today at 102.70 down by more than 6% in the last 8 trading session.
So its good idea to get rid of current holdings of TBT and TMV, even if it is not a perfect time to long treasuries.
Note that it is not a good time to short TBT or long TLT. Existing positions on TBT and TMV can be sold at these levels.
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 again - Sep 03, 2010
TBT/TMV to hold / sell- Sep 03, 2010
TBT/TMV are buy - August 30, 2010
FAZ to hold / sell - August 19, 2010
TBT is a buy - August 19, 2010
Add TBT, TMV to watch list - August 16, 2010