Wednesday, 28 November 2007

New Story: "Stocks May Revive as Funds Exit Bonds"

Safe-haven Treasuries have shot up, up and away since last summer's subprime panic, as money has flowed from stocks into government bonds. Some analysts say Treasuries are topping and that yields are bottoming. See my take for SeekingAlpha.com inspired by the Commitments of Traders reports here.

3 comments:

Dave said...

Hi Alex,
Absolutely love reading your articles. I'm not trading on this system (but am sorta paper trading on your system). I am finding it more and more interesting, as I continually do more research.

How are you planning on shorting 10yr? Are you going to short an ETF? Or are you going to purchase something like itm PUTS on TLT?

Cheers!
Dave

Alex Roslin said...

Hi Dave,

I'm long XBB in Toronto for the 30-year signal and am fully loaded up in non-registered accounts, so I don't plan to trade that signal.

Otherwise, options I might consider are the Horizons BetaPro Canadian Bond Bear Fund or Rydex and ProShares inverse bond funds - although they're mutual funds, which I generally stay away from. Can someone out there please create an inverse bond ETF?

Regards,
Alex

Anonymous said...

Very, very nice call on the bonds.

Cheers!
Dave