TLT is a buy due to price weakness and expected Treasury support for long-end yields.

Now, next, Don, you've brought us another bullish deal today, and you're bullish on the iShares TLT bond ETF , despite the global sell-off in bonds. So, explain the thesis here and what you expect the bonds to behave over the coming weeks.

Global bond sales? This is the right time to take advantage of this type of price movement . Bond vigilantes may appear where there is some selling activity in the bond world. Look , I focus a lot on futures products.

I am watching "ZN", which of course are 10-year Treasury bond contracts. I am watching ZB, which is a 30-year Treasury bond . TLT is a very good combination , so to speak, of both.

Now, why would I want to sell a put option? For those who are not familiar with selling put options , let's talk a little about the strategy. By selling a put option in this particular case, I would sell an option with an strike price of 80 until the expiry date of November 20.

Selling this option means that I am actually ready to own the TLT in the long term, which means that I will actually buy the bond exchange-traded fund itself.

So why would I really want to take this position? Forget about looking at the graph for a moment, okay ? We'll leave this to Rick for a bit, is that okay? I believe the statement has already been released.

The Treasury Department will step in here to provide support for this matter. As you know, yield curve control is still yield curve control regardless of what it's called. You could call this "Operation Twist".

You could call it a version of quantitative easing , okay? But Scotty B. at the Treasury Department stated that they would step in and buy the longer part of this curve, which somewhat supports the thesis of this deal.

I am not trading against the Federal Reserve; you know the Fed may raise short-term interest rates. I am in contact with the Treasury Department in this particular case. This means I will sell put options, and if I am obliged to buy TLT, that's great.

If that doesn't happen, look, I'm going to sell a put option at $80 for November 20th. This put option can currently be sold for credit of about one dollar. So, if I am obliged to buy, I will buy it at 80, but my initial purchase price is around $79. So, the total cost price is approximately $79.

Clearly, once again, you need to be comfortable with the idea of selling a naked put option in order to want to acquire shares in this investment fund.

Okay, Rick. As we look at the TLT box here, what do you see in the technical settings here? Do you see any possibility of an opportunity in the near term? correct. It is always good to make sure we understand the mechanisms of allocation risk and everything related to it in the case of selling a put option.

So, in this case, we had a downward-sloping channel shape that gave us our lowest levels at 81.17. Now, we have broken through this channel upwards . You can draw a different border line now.

A good trend line usually connects three or more points here. So, we are just trying to trace our last trail with this line. But our white line here has been tested around the 83.20 level .

That was roughly where we saw our brief incursion over previous peaks, but it collapsed quickly here. Now, we have fallen back below the 82 level. The 81.17 level stands out as our lowest point over the past 52 weeks.

Meanwhile, the 84.30 and 84.80 levels also stand out as upside targets. So, if we move down as we said, it will take reaching 79 for this trade to start reaching the breakeven point.

So, that would be a good way to look at the downside here. Therefore, our 5-day and 21-day moving averages are roughly between 8226 and 8262 with a long-term downward trend , and our 251-day exponential moving average is also trending downwards.

So, if we start to cross those moving averages again, they are shorter and less important, but they are early warning signs of a possible trend reversal. So this could be an important thing to watch: the Relative Strength Index (RSI ) is below the 50 midline.

You could draw a very gradual upward trend line here that might be in play. So look for a push to get back above the 50 midline here. The volume profile in this case shows that we have a node in this area around our current position near 82 to 83, where trading appears to be less intense .

Our control point is at the top at 87.14. That is the most heavily traded area on our chart. Well, we are currently at 8180, which is almost at the breakeven line today.