Buyers In Control - December 2, 2011

[Wei]

TLT's chart looks promising for a second leg down, but the MF chart looks very bullish though.

I ended up closing the vertical put 72/74 for 23ct credit and rolling the 74call for this week to next week for 1.18ct. So my new max profit if we stay above 74 is 183ct+23ct+118ct=324ct. Initial entry was per Robot 73.14+3.24 equals 76.38 and my current break even is 74-3.24 = 70.76

The put vertical served its purpose - yesterday during the sell off - my IWM position was more or less flat for the day. So my 2yr old and I could spent some time in the Natural History Museum ;)

BTW I still wish we had a TLT robot -- I "predict" the next significant trade-able trend will be short TLT.

[ernsttanaka]

TLT's chart looks promising for a second leg down, but the MF chart looks very bullish though.

When it comes to tlt and the other bond ETF's I don't think ETF volume is a tell-tale for what actually is happening. The bond futures and their derivatives are (I think) more products to watch. Let's not forget we are talking about a market with a couple of trillion in size and players like Bill Gross and Jeffery Gundlach - to name two biggies.

I am very novice when it comes to interest rate trading - (read extreme novice), but I suspect that the EU will have kicked the can fare enough down the road that it has become invisible for some time. With the political system in the US in disarray till Jan 2013, I presume we will get an attack on the US bonds. Which other sandbox is available for our bond-vigilantes to play in.

If my theory plays out -- then I see interest rate going up, USD going up!!!, SPX coming down.