A long on the long bond (30-yr Treasury via TLT or /ZB) can also be what I refer to as an ‘indirect’ hedge against a short on QQQ as falling rates (bond prices rising) would be net bullish for the stock market (gains in /ZB offsetting losses on /NQ or QQQ short) but if Treasuries drop because yeilds are rising, that would be a net headwind (bearish) for the stock market… so gains in the QQQ short ‘should be’ (but not guaranteed) offset by losses on Treasuries.

The kicker is if things play out the way I suspect they will & the stock market continues to fall to my next target on the daily chart of QQQ (T2 & the 200-day MA’s), which in turn triggers a flight-to-safety bid in Treasuries, resulting in gains on both trades.Win/win & why I often prefer indirect vs. direct hedges on my positions.

thank you. i think i’m going to be using quite a few treasury bonds soon. EDV first

I try to provide something for everyone here…lol: TLT is right back to where we entered the current long trade after hitting & reversing off the first price target (which is typical) and making a marginal new & still divergent low: https://rightsideofthechart.com/zb-tlt-long-bond-trade-idea-12-12-25/