Profit from the Treasury’s Gain

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Editor’s Note : While Sam Collins is on vacation, we’ve asked Nick Atkeson and Andrew Houghton, editors of Big Money Options, to provide you with a trade of interest until Sam returns June 1.

ProShares UltraShort 20+ Year Treasury ETF (TBT) — With the Treasury having to raise historic amounts of capital through note sales, many investors believe long-dated Treasury yields will go higher and the bonds will collapse.

TBT rises at twice the rate of long-dated Treasuries falling. From a technical standpoint, it appears TBT has broken out above $53.50 and has “filled the gap.”

For those who believe Treasury rates will continue to rise, TBT is an excellent way to play this move.


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Sam Collins is a registered, fee-based portfolio manager who may be contacted samailc@cox.net. You can also check out an archive of some of his most recent market outlooks by clicking here.


Article printed from InvestorPlace Media, https://investorplace.com/2009/05/5-28-09-tbt/.

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