Looks like treasury bonds at a crescendo high. Time to get out of those bonds!!!
It is now time to sell sell sell your TLT - Bonds are going to crash
- Thread starter retaildaytrader
- Start date
http://www.priceactionlab.com/Blog/2011/09/tlt-possible-correction-to-close-gap/
Maybe beginning of bond downtrend if Greece problem solved.
Maybe beginning of bond downtrend if Greece problem solved.
Iâve been doing some research and it doesnât seem like the feds operation twist is going to accomplish much, hereâs some numbers
2010 US bonds outstanding 37 Trillion dollars
Daily trading volume of fixed income 822 billion dollars nearly all of which is in the US market
Monthly FEDs purchase is 40 Billion dollars
822 x 21 = 17262
(40/17262) x 100 = 0.23%
There buying power works out to about 0.23% of monthly trade in US fixed income, this can create that much of a increase in treasuries like TLT.
Maybe if the market buys what the Fed buys because the Fed is buying it, could create a higher demand.
Iâm currently shorting TLT because at these prices the yield is becoming very unattractive compared to the rest of the fixed income and also other investments like stocks and I reckon that it will crash as the money gets pulled out + itâs looking allot like a bubble
Please do correct me if Iâm wrong Iâm looking for a sounding board here to give me some feed back
2010 US bonds outstanding 37 Trillion dollars
Daily trading volume of fixed income 822 billion dollars nearly all of which is in the US market
Monthly FEDs purchase is 40 Billion dollars
822 x 21 = 17262
(40/17262) x 100 = 0.23%
There buying power works out to about 0.23% of monthly trade in US fixed income, this can create that much of a increase in treasuries like TLT.
Maybe if the market buys what the Fed buys because the Fed is buying it, could create a higher demand.
Iâm currently shorting TLT because at these prices the yield is becoming very unattractive compared to the rest of the fixed income and also other investments like stocks and I reckon that it will crash as the money gets pulled out + itâs looking allot like a bubble
Please do correct me if Iâm wrong Iâm looking for a sounding board here to give me some feed back