Bond rally nearing an end?

[steveosborne]

Lets hope so. Sorry I didn't post it earlier.

I'm not particularly excited about this trade because I'm just betting on a short bounce with a modest position. I usually try to ride waves of 4 or more points in a period of about 4 to 8 weeks but those waves are getting scarce.

 

[gharghur2]

Agree! the bounce is underway, not sure how much it will be either. But not expecting a whole lot either...

 

[steveosborne]

I expect the bounce to last a couple of weeks.

 

[Surdo]

Let's close on an uptick!
I am cautiously long myself.

 

[gharghur2]

Hope you guys are right, stocks could use the relief...

 

[Surdo]

Now I am starting to get excited, 30YR Yield > 10YR Yield!

How 'bout dem apples?

 

[gharghur2]

yes! stock indices liking it too :0)

 

[Surdo]

I like the "Apple" indicator!

 

[gharghur2]

it's moving pretty good as of yesterday morning ...

 

[steveosborne]

Quote from gharghur2:

good timing

It was luck, really. While my exit points are very satisfactory, I'm still working on correcting my tendency to get in too early and that was one of the reasons why I established a bullish spread instead of just purchasing calls. The two options I had in mind yesterday when establishing my spread were:

- If we get a substantial bond dip that sends stocks, oil and gold down, I will liquidate my short 10’s at that point and expect the bounce to take place then.

- If there is no substantial drop before bonds start climbing, I will keep my short 10’s; liquidate my long 30’s at the end of month; ride the drop that will follow with my 10’s ; and quickly pyramid on my short position while bonds are going down.