TLT
Credit - I Thought Inflation? What Are You Scared Of?Idea for US30Y:
- Bond yields dropping rapidly.
- Bonds are being bought up for 1 of 2 reasons:
(1) Investors are afraid and would rather hold negative yielding bonds than other risk assets.
(2) We are experiencing deflation, despite the media blaring inflation.
Reminder:
GLHF
- DPT
Elliott Wave Analysis: TLT Has An Unfinished Five-Wave DeclineHello traders and investors!
Today we will talk about TLT treasury bond in which we see very interesting development.
We are observing a bigger A-B-C correction, where a five-wave decline within wave C looks to be unfinished. Currently we are tracking a three-wave A-B-C correction within wave 4) that can stop at the strong trendline connected from the highs, so watch out for another drop for wave (5) of C towards 130 support level before bulls show up.
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Bond Fund TLT Is Getting Ready To RIP HigherBond Fund TLT has formed what is an ideal reverse head and shoulders formation. I am waiting for a break of the neckline before going long. This is on the back of continued FED accommodation and some early signs that inflation is cooling off. It might be time for bonds to shine for a while.
Rolling (IRA): TLT July 144 Covered Calls to August 143... for an .80/contract credit.
Notes: With the 144's at 50% max, rolling out and down to the 28 delta strike in August. Total credits collected of 7.93/contract (See Post Below) versus a short call value of 1.61 = realized gain of 6.32 so far. I last acquired at around 110/share, so am fine here with being called away (even though I don't think that's going to happen). Similarly, I'm fine with collecting short call premium + the dividends, which are nothing to write home about -- the May 3rd dividend was a whopping $20.31 per one lot.
JPM Bearish back towards 155 if Breakout FailsLooks like its back trying to challenge a break out to new highs
This all depends on rates really.
I guess the anticipation is that rates are going up eventually so banks should too? Just a guess
Banks have led recently, maybe time to cool off and drift back to support
The NFP number this morning gave a hint of how JPM will react in the future to unfavorable data
Just gonna play it bearish looking for maybe a $5 pullback or so over next week or 2
If rates start getting really frisky this trade is done
If it blows through 161.5 I'll be out, might wait for that test before entering
Some sort of diagonal put spreads not sure on specific strikes yet
Interest Rates Topping?/TLT Finally Making a Bottom?/Looks like the craze over high interest rates is coming to a congestion zone. If you go back to 2019, there were hella buyers at $135. I think we are getting to the point where such high interest rates, while the stock market is still skyrocketing, and yet the global economy has not recovered; or said better, investors are in denial.
When interest rates are low, and the stock market is high - that's inflationary. When interest rates are high, and the stock market is high (making ATHs), and yet we are in the eye of a deleveraging, currency crisis - I can't help but anticipate a top on both rates and the stock market. At some point, the Fed will have to get people to buy bonds, or they'll do it themselves, to push down the long-end, and I think the stock market will get cold feet, and start selling off.
That being said, there could be something more nefarious happening that we just aren't taking into account, which is the Fed just continuing the "we need to push inflation up" narrative until they are blue in the face (idk how they aren't already), and people continue to take on debt and play the euphoric stock market game until financials finally bite people in the ass. The fed knows interest rates going higher, in a crisis like this, is a ticking time bomb, and at some point, will have to give in, but that's the point - they're going to let the system panic and then they'll come in, once again, and lend a hand.
What worries me, though, is why would anyone give a shit what they have to say at that point? No one can get loans when banks don't want to lend - e.g. people are in forebearance, people's businesses are closing or on the brink, people are malignantly unemployed in higher and higher numbers - fred.stlouisfed.org We're getting to the point where the risky money has to go somewhere, and it's either bonds, savings accounts, consumer debt, or stocks, and the fed will make damn sure that it's stocks or consumer debt. But what happens when people are exhausted and don't want to take on debt - or quite frankly just can't? Or when the stock market isn't going any higher and the support zones for every major index is thousands of points down? The money goes into savings, banks go insolvent due to lesser and lesser risk-on sentiment, and they dive into treasurys to find a safe haven for liquidity, and boom - you've got negative interest rates.
I'm fairly certain this will be the case this year, and the Fed will, again, be forced to ramp up the emergency SPVs like we've never seen before, and virtually breaking every rule in the book so that banks stay solvent, and people continue to take on loans.
Are bonds ready for a bounce?Bond have fallen a lot and quite fast. The sentiment is really stretched and most expect yields to rise more (bonds to fall lower). In my opinion there is quite a decent chance the bond bull market is over given that we had a massive blow off top in March 2020, but this doesn't mean that I don't see a potential bounce here or even bottom. Bonds hit key support, swept the lows before the big move up and are no showing signs of life.
When I see so much debt, when I see slow growth and all the bad things going on around us... I don't think we'll get huge inflation any time soon. To me this is cyclical inflation after a supply shock rather than anything else. Many other yields are decreasing and spreads are the tightest they've been in years, so why would bonds go much lower? The Fed has failed to meet its inflation target for years, but they are going to make it now? We are also post the SLR cliff that could had been the 'sell the rumour buy the news event'
Rolling (IRA): TLT June 18th 145 Calls to July 144... for a .71/contract credit.
Notes: A continuation of my TLT covered calls (i.e., shares of stock + short call). (See Post Below). With the 145's converging on 50% max, rolling out to the July 144's (28 delta) for a .71/contract credit. Total credits collected of 7.13 versus a short call value of 1.49 = realized gains of 5.64/contract so far on the short call premium end of the stick since December.
Alright, Where's the Tomato's??? 🍅So, ((For Me the 18H chart is symbolic)) over the last 18-24 hours I have made plenty of new friends. I am curious how many more cool & tolerant people are out here just waiting for a thought contrary to their own (Just image the dialog)... 🤔 lol
Funniest thing I just realized that the majority have been buying the entire 6-12 months of selling or did you mean I was supposed to be buying the whole way up too?? LOL I was recently told in a conversation that "Sell in May and go away is dead!" and I thought to myself "What's wrong with today?" LOL (Important too note we were discussing Dogecoin ) GIVING ZERO ADVICE ON THAT DOGEIDODO 💩 What's amazing is the infamous expression "But... This time is different..." May in fact hold weight inverse of expectations yet to be fully realized. Invert the chart and get bullish🐂 on your bearish 🐻 🙃
Questions like: [/b ]"What price to buy sir?" "When to get in?" "Is it too late?" "How much more moon?" "(Fill in the Blank) to $1,000,000 now?"
Here's my favorite question to ask "myself" What's my cost to acquire?
Step 1: Ask once
Step 2: Figure out the answer
Pro Tip: "Noobs please try to understand some people have had bags BIGGER and LONGER than you."
#TheyBuyLambos 😂 #lambo? All this time I have been saying #LandThough 🏞🏠🏘 LOL
What are your thoughts? Is it bad that people like to realize gains say "Cool! More Dollars now!" Or am I really the only person that's down to pull profit and even short a lot??? LOL No advice to give just thoughts that I can't shake after the last 6 years in the world of "CRYPTO" Bra
"KEEP CALM AND MANAGE THY RISK!" 🤓
P.S. If BTC is down so are your easily pumpable Chucky-Cheese Peter Piper Pizza🍕 Tokens/Coins and your Plebian Overloads likely don't like me too... lol
P.S.S. Welcome to the Circus 🎪 It's almost in town little Timmy 🤡