Long Bonds & COT

The action in the long bond, double inverse ETF, continues to favor the bulls. In other words, it reflects lower bond prices. The 1/15 gap was challenged on nearly a 20% increase in volume. This volume surge, or tape, confirms the up move. The fade into the gap with volume contraction implied support. TBT stands ready to challenge the overhead gap/magnets. The pull of the large magnet is increasing.

Expect the managers to start leaning hard on price as MOVB moves into overbought territory. The value of the COT setups is not only when they precede but also fail to precede price moves. Any disconnect or loss of influence by key players in market such as U.S. Government Long Bonds, which ultimately reflects the U.S. dollar, will likely be revealed by price acting contrary to influential money flow setups.

Double Inv Long Bonds ETF (TBT):