Discretionary Trading
Now Reading
It’s Just A Flesh Wound
0

It’s Just A Flesh Wound

It’s Just A Flesh Wound

by The MoleMarch 24, 2021

The durable goods report for February came out this morning and thinking linearly – as usual – mainstream analysts expected positive growth to follow that of the previous 9 months. Unfortunately reality stomped on that little phantasy as it turned out to be a tumble instead of small gain which had to be the general consensus (LOL). Strangely it appears that locking down half of the economy and putting large swaths of people out of business will come at a price sooner or later.

Somebody must have been in the know, at least judging by yesterday’s session which was decidedly bearish. This stands in stark contrast to the E-Mini futures which have barely flinched this morning. As the saying goes: buy the rumor and sell the news.

Also let’s remind ourselves that one swallow does not a summer make. Meaning a bit of downside after a bear trap and new all time highs is not at all unusual and actually healthy, especially if it does not affect IV across the board. More about that later.

When looking at various sectors the financials are what grabbed my immediate interest. The past week has given us nothing but red candles and I was trying to figure out whether or not this could be an early harbinger of trouble to come.

Maybe but up to this point financials seem to remain in sync with the TNX, which means that we not yet have reached the point where higher interests start to affect banks and other financial institutions in a negative way.

The drop in interest rates however puts an interesting bond trade on our radar:

evil_separator

It's not too late - learn how to consistently trade without worrying about the news, the clickbait, the daily drama and misinformation. If you are interested in becoming a subscriber then don't waste time and sign up here. The Zero indicator service also offers access to all Gold posts, so you actually get double the bang for your buck.

Please login or subscribe here to see the remainder of this post.

About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
Enjoyed this post? Consider a small donation to keep those evil deeds coming!

BTC: 1MwMJifeBU3YziDoLLu8S54Vg4cbnJxvpL
BCH: qqxflhnr0jcfj4nejw75klmpcsfsp68exukcr0a29e
ETH: 0x9D0824b9553346df7EFB6B76DBAd1E2763bE6Ef1
LTC: LUuoD6sDWgbqSgnpo5hceYPnTD9MAvxi6c
PayPal: https://paypal.me/evilspeculator