TBT Successfully Retests Support From Breakout

A little over two weeks ago I pointed out that it looked like TBT, the ProShares UltraShort 20-Year Treasury, had finally bottomed. TBT broke out from an extended consolidation pattern that is the classic hallmark of a sustainable bottom. On Friday, TBT surged 3.3% after having erased all the gains from the breakout. TBT made a picture-perfect bounce off the support from the breakout. I drew this support line as an approximate measure of TBT’s channel of consolidation. For anyone who missed the first breakout, this move essentially represents a second chance to participate in the move.


TBT successfully retests support
TBT successfully retests support

Be careful out there!

Full disclosure: long TBT shares and calls and short puts

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