Wall Street eyes TLT (NASDAQ:TLT) short

I hope everyone had a restful Thanksgiving and that you’re ready to ride the bulls ?

TLT (NASDAQ:TLT) is one stock that Wall Street will be looking to short and here’s why:

TLT is not your ordinary “stock”, it is actually an ETF that tracks the 20 year treasury bond. As boring as they are, I always keep my eye on bonds because they give me clues as to what’s going on behind the scenes of the market. 

A really nice short setup forming on TLT, and rates have gotten ahead of themselves anyways. Check out what one can notice on the hourly chart over the last few weeks:

Earlier in November, we saw my crossover setup take shape to the upside, which fueled a big rally. Now a bearish crossover is forming and TLT is trading below the hourly lines, which tells me that the rally is starting to run out of steam and the trend is shifting. 

The contract that one should be going with is TLT Dec 20 2019 141 Put @ $2.05. 

Stop on this would be if TLT closes above $141.50. Otherwise, one should plan to add to this around $1.50 and hope for TLT to make a move back down to the 200-hourly around $138.50 in the next week or so.