Pre market activity (8:31 a.m. EST) has TLT trading up +0.74, at 161.29, which is above the target level set in the last update.
We’ve already laid the groundwork for the ‘speculator’s’ short position in bonds as the largest in history.
It’s the ‘commercials’ that know their markets and in this case (according to Steven Van Metre), the commercials are the banks.
Isn’t it interesting. The banks always get their money, right?
Well, that may be about to happen now, as well.
Just a quick digression from today’s update and concerning the Van Metre link above. At time stamp 14:29, he shows a Wyckoff accumulation schematic. Nice.
From a trading standpoint, there are leveraged bond funds such as TMF (not advice, not a recommendation).
However, this firm has never traded that vehicle and is choosing to be short the junior gold miners (JDST) as well as long natural gas (UNG) for its current positioning.
Natural gas (UNG) for a seasonal trade … with some potential supply disruptions thrown in; the Junior Gold Miner short position (JDST) to work the ‘deflation’ side of what’s going on.
Back to the markets. If we’re doing our job right and there’s a huge down-draft, we’ll already be in position to profit as a matter of course.