Excellent Bonds
Tim Knight | Dec 27, 2018 11:25PM ET
I am absolutely THRILLED about how today went. Let me recount my day for you, to set the stage:
- As you know, a few days ago, I slipped off my well-worn bear suit and went bullish;
- Therefore, I had gone long GUSH (triple-bullish on energy companies), FAS (triple-bullish on financials) and very, very short on bonds (by way of a TLT short and long TLT puts).
- Today’s opening absolutely sucked for me. My short bond position created a 0.5% loss in my overall portfolio. I dumped it at a loss.
- I vacillated quite a lot about shorting today. I covered my 4 shorts. Then I entered a few more. Then I finally just threw my hands up and covered everything and re-shorted a huge TLT position.
- I also did some day trading in SPY (NYSE:SPY) (profitably).
OK, those bullet points are getting boring. My apologies. Anyway, I was kind of frustrated until about the last 90 minutes of trading. At the end of the day, equities rallied:
And, far more exciting, bonds completely puked their early gains:
The figurative as well as literal “bottom line” is that I posted ANOTHER RECORD HIGH in my options account and also turned a profit in my big account. More important, my directional shift AWAY from equity shorts and TOWARD equity longs and bond shorts is really starting to show promise.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.