A mixed opening this morning seems to be struggling for loft. Although Friday ‘jackpot’ bets have found little success in the first hour, put options could turn out to be late bloomers. Out-of-the-money calls in VXX are a good way to straddle the bet, especially because this vehicle has bounced today from a moderately attractive target at 27.45. On balance, jackpotters should focus on the downside, since there is obviously not enough juice to push stocks higher today.
Friday Deceptions
- September 14, 2018, 2:58 pm
Continuing to observe a 12% capitulation of the bond market of 12% as in 1987, after a 17 month decline, with all time high in COT longs.
The ZB/ZN close at its 2nd lowest level in 2018, and at its lowest level of towards 12/2014 price levels.
Markets ‘crash’ from their ‘low’ points not from their high levels.
Observe this downward spike as an ‘event’ towards and end in rate hiking, and a possible non confirming event towards a same or lower high in yields.
Such will setup the next long term bull market in ZB/ZN (lower yields).
Have a great weekend Rick, also well said on your comments towards our fellow Americans in the great South. Wish them all well as we are always united.
USA the land of God and Country!