December 6 Premarket – Bonds Are the Only Bubble on This Planet

We are releasing this premarket (click here) because in the comments section is my discussion on 12/6/17 about shorting TLT (red arrow), via buying 2018 March 125 puts. There is only one bubble market in the world, that is the bond market, and it is wildly bearish. In October, after covering another TLT long put position, I wrote this piece explaining that trade exit, and also explaining well ahead of time, my belief of where the next top in bond prices would be. And how to profit from that, by buying those TLT puts. Bonds are in a MASSIVE distribution area, (yield bottom). Yields on the 1 month, the 3, the 6, the 1 year bills are in huge uptrends. The 2 year, the 3 year, the 5 year note yields have also all broken out. The 10 year is next, to be followed by the 30 year yield. The 30+ year secular bond bull, which began in October 1981, ended in October 2011 on the short end, and in July 2016 on the long end. This is 1942 all over again, with the massive secular uptrend in yields starting. Yields did not top until October 26, 1981 at 15.21%. The big bond bear will destroy central bankers’ “powers”. The CBs have no idea how little control they actually have, they are not omnipotent, although they believe they are, and they are in for a huge surprise. All of this is extremely bullish for all the other big markets (except for the fiat currencies), as the capital slowly diffuses out of the biggest market in the world, and into the others. And I am still long TLT puts (short bonds):

 

 

 

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About traderscott 800 Articles
Trader Scott has been involved with markets for over twenty years. Initially he was an individual floor trader and member of the Midwest Stock Exchange, which then led to a much better opportunity at the Chicago Board Options Exchange. By his early 30’s, he had become very successful in markets, but a health situation caused him to back away from the grind of being a full time floor trader. During this time away from markets, Scott was completely focused on educating himself about true overall health and natural healing which remains a passion to this day. Scott returned to markets over fifteen years ago where he continues as an independent trader.

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