U.S. Treasury Bonds ETF (TLT) Crashes Lower; Hits Initial Price Target

tlt treasury bond etf decline lower bottom price target image investing november 9

The long-term US Treasury Bond ETF (TLT) came within 0.63 cents of my $154 price target. This is an MFU-2 (money flow unit) generated price target that typically produces a strong countertrend rally.

With this in mind, I am covering my short position in TLT (note that we first wrote about this in August).

I will be looking to re-short in the coming days/weeks with the expectation of another leg down to the MFU-3 price target of $145. Note that we tend to see the MFU-3 price target hit 70 percent of the time when a negative Money Flow Unit is formed.

For now, though, treasury bonds are heading higher in a counter-trend rally.

The author has a position in the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

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