The chart below was the August 18th quiz on, (see post).  Reflecting a “crossroads” of resistance in the bond ETF (TLT).  Today CNBC is all over sentiment numbers for equities, in that the number of bulls has increased. Speaking of a large number of bulls….On the same day as the quiz, according to the Daily Sentiment Index ( bonds bulls stood at 98%!  Can you say “crowded trade!!!”

I produced the chart above to encourage investors to “harvest against strong resistance, when sentiment was out of sight!”  As many of you have seen, I believe in harvesting at resistance!  The chart below, posted on 8/29,  suggested that bonds were at a “peak in elevation” (see post) and for those wanting to score on defense, pick up TBF.  

Below is a current snapshot on TLT…which is breaking another key support line, reflecting an unwinding from the 98% bullish position.

For those of you that shared you harvested bonds, great job, since TLT is down over 5% since the 8/29 post. For those scoring on defense (TBF), the break in the support line is a plus.  Use line (1) as your new sell stop for TBF, to protect recent gains.

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past