TBT Exits--- Hits Stop

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Proshares Short 20 Year Treasury ETF (TBT) hit the STOP this morning @ $20.75. We exit with a $1.00 gain +5.06% in 2 days, having entered 3/14/12 @ $19.75 LINK

SELL BONDS

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ITZ posted yesterday that $TBT was on the radar  LINK and was calling for a breakout of an Ascending Triangle formation. We got that and ITZ entered Proshares UltraShort 20+ Treasury ETF (TBT) at $19.75. Lets place a stop @ $20. Chart

On The Radar: TBT

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Much of today's focus is on the FOMC meeting. Speculations of QE3 have reduced markedly after the Chairman's testimony weeks ago. It's widely expected that not much change would be seen in the rate guidance and the policy statement.

Yet, Bernanke remained concerned about the employment condition in the US. Given the fact that the unemployment rate stayed above 8% in February, further easing is still possible later this year.
Proshares Ultra Short 20 Year Treasury ETF setting up a nice Ascending Triangle, should it breakout above $19.75 resistance, ITZ believes we could see $22.

Short Bonds? TBT

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In a recent article on TheStreet.com and also in a tweet, Doug Kass, president of Seabreeze Partners is saying to short bonds as stocks begin to move towards the upper end of his range for the S&P 500, which is 1150.
He believes that by going long ProShares UltraShort 20+ Year Treasury (NYSE: TBT), this provides a better risk/reward opportunity than going long stocks. Kass has previously been bearish on the bond market as he believes that yields are way too low. However, the TBT continues to trend lower, down nearly 2% intraday today. Is it at a bottom or will investors continue to buy bonds, after all overbought can continue to stay overbought?
In the chart below looks at the TBT against the 10 year Treasury yield as well as the 30 year.Not really sure if now is the time to enter the TBT, but I respect Mr. Kass and wouldn't bet against his judgement. Definitely something to keep on the radar.

Two interesting reports to read: Doug Kass Adding To TBT LINK  Buffett's Lesson on Inflation and Bonds LINK