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June 29, 2009 / Jeb

Treasuries Facing Resistance/Dollar Bear Rally Weak

TLT

TLT (Long Term Treasury ETF) is encountering major resistance at $95.  I expect this bear rally to end soon and long term interest rates creep upwards. 

Right now long term treasuries are a measure of the fear on inflation.  As fear of inflation increases money flows out of treasuries into commodities.  It seems as though the government will not do anything to curb inflation for awhile.  This should be good for our precious metals investments. 

We are experiencing the bear rally for the dollar and the correction for commodities coming to an end.

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