Markets moved well within our expected range this past week, even though IPO mania and a Wednesday rally has buyers believing the markets are impervious to anything. Moving forward keep a close eye on your overall risks as bulls will attempt to buy in every dip and bears will look for a catalyst to spark a sell-off. Though traders and investors may not agree on much; we are all starting to come to the conclusion a rally of this magnitude will not end well. Opportunity is large in what can only be described as a low volatility yet high risk situation. Let's take a look...
Markets moved well within our expected range this past week, even though IPO mania and a Wednesday rally has buyers believing the markets are impervious to anything. Moving forward keep a close eye on your overall risks as bulls will attempt to buy in every dip and bears will look for a catalyst to spark a sell-off. Though traders and investors may not agree on much; we are all starting to come to the conclusion a rally of this magnitude will not end well. Opportunity is large in what can only be described as a low volatility yet high risk situation. Let's take a look...
2 Comments
Al
March 4, 2017Nice, Don. Yeah, sold TLT puts this last week as doubles and am now long TLT calls, especially after the FLAMING GIANT move Monday. I agree with you, the short bond trade is silly overcrowded and a snapback is likely. Very good possibility of a 1-1.5 point snapback rally in TLT, and while that is not a 6-bagger trade, IMO it is a very probable one. Conservatively TLT should recover 1/2 the distance it "gapped" down, to say 120.5. TLT really perked up Fri EOD.
Long serious pile TLT 120.5 C Mar 31.
Harry
March 5, 2017Don you keep bringing all this good knowledge to us all, Thank You!