There’s always a rally somewhere. Can you see it?
I call this The Liquidity Trade. It’s 3 1/2 points off the low of 8 days ago.
Not much. Not good.
The TLT of course is a proxy for the bond market. It’s the 20 year Treasury bond ETF. If you are still holding bonds, what can I say but, “Oh the humanity.” But I warned you. I’ve been screaming to GTFO since August 2020.
But there’s still a lot more cash coming into the market from T-bill paydowns in May, and that’s short term bullish for the 10 year. I think it will drop below 2.65 and that will trigger a lot of short covering in the futures. So the 10 year could target 2.50. Another gift rally for the longs to take as an exit. But they won’t.
Tons of Cash, Not In Use, Signals this Huge Change in the Market
This is a repost, which originally appeared at Stool Pigeons Wire at Capitalstool.com. View original post.
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