Without too much noise, interest rates appear to be creeping up. In comparing with other trading instruments I watch, it appears to have the biggest potential for a move. As the rising rates indicate an increase in inflation, I've also had my eyes on a few commodities. Inflation has too long been downplayed but we all know the reality of inflation because we...
I'm soon to be SHORT Bonds and watching for best entry.
While I'm concerned with the small reaction thus far in TBT but believe the Stock Mrkt is at a reflection point this week.
This is a short term view but I am looking for a LONG on TBT/ and or SHORT on USM20 ----->
Thinking bonds might be topping here or in the next day or two. Good risk reward here, especially with cheap options. Unless you object to buying a leveraged instrument on a leveraged instrument. Big time nice if right!
With TLT showing signs of a top and gold on its march to lower lows I see a clear opportunity in TBT. Five impulsive waves up, followed by a 3 wave correction to the 61.8 Fibonacci and is poised to continue upwards... Excellent risk to reward here if you have a stop just below the retrace level...
Feel free to hit me up with any questions!
LIKE, COMMENT, FOLLOW
A double bottom with an upside divergence in the MACD is taking shape. might be tad early but TBT is the leveraged ETF on the 20 year Treasury. Bought 10 contracts of the 33.5 puts expiring MAY 24 AT .09C BIT SPECULATIVE WE'LL SEE.
Max Loss on Setup: $422
Max Profit on Setup: $178
Break Even Versus Spot: 35.22 versus 35.37
Debit Paid to Spread Width Ratio: 70.3%
Notes: Tomorrow's the last day on which 2018 tax losses can be realized, so I can foresee some additional, last minute dumpage, followed by the Big Dicks buying the dip on Wednesday to position long...
It always amazes me how the technicals always seems to match up beautifully with these economic news days.
Suffice to say if this line holds tomorrow rates and the market will will rally. If the line is broken I expect the market
to break support as well.