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Massive Move In Treasuries

Massive Move In Treasuries

by The MoleAugust 2, 2011

While I scrape a few charts together I wanted to point out one chart everyone should see today:

That is one MASSIVE move on the long end, folks and we are now officially way outside the 2nd and probably 3rd standard deviation. We are looking at a possible dislocation as fear is gripping this market. Now if you are positioned to the downside you may be loving this but experience cautions that markets can get rather volatile on the way down. Be prepared and please only bet small.

A quick look at the 30-year futures for the subs:
[amprotect=nonmember] Charts and commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.
[/amprotect] [amprotect=1,13,9,12,5]

ZB is now far outside its 2.0 Bollinger and although I recommended everyone to take profits at 127’00 after a fast move I maintain that you do not want to be long here. Rather a tiny speculative short position may be good medicine – but be aware that bonds do not trade like equities and it’s possible that we’ll see one or two more candles up here. So, if you take this trade put a stop slightly above 131’04 and then sacrifice a chicken to the Dark Lord of Bond Vigilantes.



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.
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