James Bond. Licence to kill?

 

Who’s your favorite James bond actor? For me, it’s a close three way tie between Sean Connery (of course!), Pierce Bronson, and Daniel Craig. Not sure who’d I’d have to say my favorite was or is – each has merit. This summer, we get to see a new Bond movie with Daniel Craig AND another movie (not Bond, but looks equally interesting) with Pierce Bronson. 2 outta 3 so far. Step up and do a movie, Sean! We need you to complete the set!

https://www.youtube.com/watch?v=syitpT-swzE

 

Anyhow, besides the new James bond movie comeback this summer, my good pal Brooke Thackray put out a newsletter suggesting that the US long bond may be putting on a summer show as well. Here is his report – a worthy read.

 

Brooke notes that the trade, if any, should be considered a short termed one. I concur. Take a look at the weekly chart of TLT below. That’s one big symmetrical triangle. Yes, it is breaking a neartermed trendline, but my target would be to the top of the bigger downtrend line. That neartermed trend breakout is suitable for neartermed traders, but not for me. Onside for the move are rising momentum and moneyflow, plus a neartermed comparative relative strength move against the S&P. In other words, there is neartermed momentum present that may give Brooke’s call a good chance of being correct.

Below is the daily chart. It is overbought—I didn’t bother circling RSI and stochastics, but you can see the lines are above the overbought points. As a daily chart, realize we could see it hover in the overbought zone for a while until the weekly overbought levels are reached.

Again, to Brooke’s point—that may occur over the summer, setting neartermed traders up for a nice little tradable pop.

 

Mid and long termed traders might want to avoid this trade. The large symmetrical triangle has been in place since 2016. It would take a good sized catalyst to move it out of the triangle. I’d wait for a breakout of the top line to confirm that potential. I’d also give it about a 50/50 chance of happening. And that’s probably optimistic. Meanwhile, short term traders: knock yourself out!

 

Keith on Bloomberg/BNN Televisions MarketCall Next Wed. June 6th at 12:00 noon

Keith appears regularly on Bloomberg/BNN MarketCall to answer viewer questions on the technical analysis of stock trends, and to provide unique insights on the factors of technical analysis used in successful investment management.

If you have questions about the technical analysis of stock trends for individual stocks, be sure to phone in with your questions for Keith during these shows.

Call Toll-Free 1-855-326-6266

Or email your questions ahead of time (specify they are for Keith) to [email protected]

Keith Richards, ValueTrend

3 Comments

  • Sean Connery may be the most loved spy, but he was great for HIS time. Not any more, so stop the comparison.

    Daniel Craig may be the most realistic spy for modern times but is so boring to watch in the movies.

    Overall I prefer Roger Moore. Why?
    Lots of cool toys, lots of beautiful women. Story lines that are just so exciting to watch.
    Movies are to escape life and have fun. That’s why we pay high movie prices and overly expensive popcorn.

    Roger Moore is the best bang for the buck. What else matters?

    If you want realistic or boring don’t go to movies, go to Documentary channel or History channel.

    Reply
  • Keith – I agree with you – those are my favorite James Bond actors too. Regarding the TLT, what other sectors would likely rise with a rising TLT? Thank you.

    Reply
    • Utilities are a good bet–seasonality works for them too

      Reply

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