Well that was fast. As fast as the drop came, the rise is coming just as quickly. Typical. Don't hate the game. Don't hate the player. Adapt to it. The market is changing, but it still has many of its characteristics from 2013 and 2014. As long as hedge funds act like herd animals, you will get these kind of moves.
If there is one letter of the alphabet that is most fitting for this market, it is V. Play the V game. When we are on the up side of the V, get long. When we are on the downside of the V, stay in cash or get short. Sure, you will be wrong at the inflection point, and that is where the move is most violent, but you make up for it by catching the V bounce that goes on for several days.
I don't see serious resistance till you get to ES 2043-2048 area, so about 7 to 12 points away from current levels. I will probably look to buy Treasuries on the dip today if we get to that ES 2048 area.
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6 comments:
TLT looking like it's trying to bounce. Still think bonds are a short but locking in my gains in TBT here.
Longed OCN
Looking to get long bonds before the nonfarm payrolls report tomorrow. BTFD on bonds till ECB meeting on Jan. 22.
All signs indicate that NFP is going to be good.
You know the BLS rigs those numbers right? Includes a bunch of part time jobs in there and inflates the headlines.
Up to you though...
Expectations are for 240K jobs, seems high to me considering the other economic indicators are coming in soft versus last month.
Bonds in a topping process dont get greedy if long
Definitely won't get greedy, but believe there is more upside early next week. And I think equities should go sideways for a while which is good enough for bonds to maintain a strong bid.
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