Our short position in TLT and Sept Treasury Bonds had a good day Friday…

We have been short TLT, and added a short in September Treasury Bonds at 173’14” Thursday. With Fridays selloff we have lowered our buy stop to breakeven, and we look for bonds and TLT to continue lower.  We did this trade because of the Technometer reaching above 50 which is overbought, and we felt a downtrend had begun.

5 Minute Chart – After the initial selloff, we was wanting a bounce to sell, so we offered a sell at 173″14″.  Hoping to sell a bounce…. We got the bounce Thursday when the Bank of England announced more easy money, and bonds had big day up.  This rally got us short at our price of 173’14”.

You can see we turned down as expected from Thursday rally, Point B.  You can also see the divergence between the OP and Force versus the price of the futures contract.
OP and Force went to a new high from the previous five days (A-B), while the price could not rally to a new high off of the bullish news from the Bank of England.
Price then turned down sharply Friday.  We have lowered our buy stop to breakeven now at 173’14” and looking for lower prices.