Every hedge funds and their wife, dog, cats, kids are short bonds.
Everyone is trapped in the narrative of the FED's rate hike.

The bus of short 10 year treasury is full. Its time for a train derail.

In a risk-off environment, do you think the FED will ever hike rates further?
Adding another level of uncertainly is the cancellation of the Trump-Kim summit in Singapore. Including the recent crash of Italian bonds, EU drama yet again (potentially 5x bigger than Greece)
The only place funds can reposition themselves are the US dollar , and US debt/treasury. Uncle Sam .

The VIX is currently near lows once again. ~13

It is time to counter-trade that, and reap the rewards of the short covering along 117 support line. You have only 2% to risk.

Just buy August 2018 - June 2019 call/ bull spread and close your chart. No stop loss.
If it doesnt get there, you lose your investments. If it does, you get back 5x~20x your investments.
All conditions are perfect.

Comment: Closed 1/4 of the call spread position. Locked in 200% gains, just in case ECB decides to step in.

Letting other 3/4 ride.

Comment: Next Fed Meeting will be on 12-13 June ... might be adding some position a day before. we'll see

Some capitulation intra-day... 5 more days to FED meeting ;)
let's squeeze those pesky bond bears.
interesting developments, who is squeezing who now ?
do you think that the fed will hike rates further ??? INDEED THEY DID !!!!!
LastBattle lapin_eliott
@lapin_eliott, yup, yet bears couldnt crack 117 at all.
lapin_eliott LastBattle
@LastBattle, and now it's done !!
Good job!
+1 Reply
@2use, thanks :D
Let's see if everything starts snowballing from here.
2use LastBattle
@LastBattle, And the sale was also good. Snowballing - complete change of direction?
@2use, not yet... its not going down despite rate hike last month.
Powell did hint on possible QE on the next downturn again.

It might take some time, major squeeze could come as soon as the FED reverses.
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing House Rules Moderators Website & Broker Solutions Widgets Charting Solutions Get Help Feature Request Blog & News FAQ Wiki Twitter
Profile Profile Settings Account and Billing Get Help Ideas Published Followers Following Private Messages Chat Sign Out