Sold TLT

I took my gains in TLT as the economic numbers didn't give market participants a reason to alter their expectation of continued QE. The easy trade in treasuries is over in that we were deeply oversold, at long term support with very negative sentiment. We have spent the past two weeks trading slightly higher and working off the oversold condition.

I believe treasuries still have more upside in the next week or so but because this is a counter trend trade I have decided to err on the side of caution. I picked up my penny in front of the Bernanke Bulldozer.

1 comment:

Anonymous said...

Not criticizing. I just don't understand the trade.

Ok, you made your 2%. If you think rates are going higher, isn't it a safer bet to buy Tbt or tmv on further pullbacks? Hold and average if it goes lower. You'll make more than pennies?

Same idea with the markets. I keep pounding the table in here,( and continue to get shrewd comments from bears) buy this market! average in on pullbacks.

again, the wealth effect is working. You posted yourself how much $$ is being poured into funds.
What happens when unemployment numbers really go down? Positive job growth of 100K-200K GDP of 4-4.5%......I think you know where this market is heading.