I have been wanting to take a crack at shorting long term treasuries for a while. TLT has been in bear territory below its long term moving averages for a while and it is now close enough to its 50 DMA that I am comfortable taking an entry position into TBT.
TBT is very manageable too using the convergence of the 50 DMA and 300 DMA as a stop out. 14 day ATR is $1.05. I’ve set a stop at $47.30 which is below the 50/300 DMA and gives it 1 day of range to work in.