The Lehman 20-Year T-Bond ETF (AMEX: TLT) closed about 80 cents off their earlier highs at 93.87 in what turned out to be a vertical panic-like move, the strength of which certainly surprised me (yesterday afternoon, in particular). The target of 94.00 did not surprise me, just the speed that it was achieved.

I remain very bullish on the TLTs for upside continuation to new highs above 96.36 established on November 26 during the heart of the sub-prime crisis. In any case, today's action suggests strongly that the TLTs should be entering a near-term correction -- into the 92.60/20 area -- prior to the next loop to the upside towards new highs.

By Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction

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