Exercise #6


2.) Taking a look at the iShares Lehman 20+ Bond Fund (TLT), we can make which of the following statements:

Your answer was A. The chart remains on a buy signal so it would suggest higher rates and higher prices for the TLT.

That is incorrect. The TLT chart has given a quadruple bottom sell signal at 93. This would suggest the TLT is poised for lower prices. Lower bond prices correlate to higher rates.

Go back to the question.