Bonds and the Markets.....

To me this is a perfect time for Bonds to Rally strongly when sentiment is this negative on how the Fed is going to proceed. You can see that my call last week for the stock markets to rally back came to fruition. As I mentioned to you it is still a time to buy the dips. Not sell the rises. There is no shortage of buyers and sellers on the market to maintain prices at their lofty levels. You can either see what you want to see in the markets, follow outdated economic data that doesn't mean anything any more or see what is really there.
      If you are looking none stop for something bad to happen, ie. the Peter Schiff type that get it right once in twenty years then sure any sort of dip in the markets is going to signal something much more ominous. I know, I know, there is too much debt, the bubbles will pop, rising interest rates will kill the markets and all that other hog wash. The point is it hasn't in the past ten years, so what would make someone think that it is going to happen now after trillions have been invested to keep the markets where they are the most stable and so that they will benefit all. Long before the markets crash you will see universal basic income so I would be looking for that next and not follow the doom and gloomers. The world is a better place. Not a worse place as some would have you believe. We have never had it so good as a human race and it is likely to get a lot better before it gets worse if we keep the military in check.
        So as you can see below I took a long in the 10 Year bonds. I really don't know how high they will go but it sure seems like an ideal place for a break out to the upside (or downside if you are on futures). My target is close to the top over time. This is a very heavy volume area and there may be some choppy up and down buying and selling but to me this makes sense. A lot of upside potential versus a small amount of downside. These are the trades that we look for. The ones that don't make sense but yet produce steady income.
      I don't think it is too late to jump in so if you care to join me then take a small position (as it is counter trend) and see what happens. There is a potential of 5 to 1 risk to reward as the stop is around 116 and the target is close to 133. So there you go.




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