Bonds have been sold hard recently and now we know who the sellers are. The Chinese are no longer the largest international US bond holders that title now belongs to Japan. The interesting part of the story is that the Chinese need the money to plug holes in their own financial system In other words they are not buying US stocks with those funds. Here's how to evaluate the current risk/reward and how to set up trades around it...
4 Comments
RON
December 17, 2016You failed to mention that holding the put on BAC your losing time value....if the underlying does not move down faster than time decay you will lose ever though you right on direction.
Michael Hach
December 19, 2016can't argue with that statement... but Don is looking for us to wake up to a 100 point s and p... drop.... hasn't happened...... and he says banks will lead the way...
Michael Hach
December 19, 2016i know just when i think the market can't go down... it does... and then seems like it will never go up.... personally i think tech is gonna take the hit
Jerry Mc gaffey
December 26, 2016LOVE IT