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 B. The chart has given a quadruple bottom sell signal. This means the risk is high for the TLT and the likelihood is to see rates rise and the TLT fall.

Correct! 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 to the next exercise.