Chris Fernandez

Shorting Treasuries with Inverse ETFs

Radicall,

Awesome points!

I have not officially started my position yet in TBT or TMV, and don't intend to yet either till I see some stabilization in the bonds, or other compelling reasons.

Today's drop in price puts the TBT technically right around resistance/support, so it could be a nice entry position either way, but I like your play of shorting TBT, or going long TBT, regardless and making money both ways.

Although I think the longer term trend is for yields to move sharply higher, I didn't mean to suggest I would be utterly opposed to shorting and going against my own trade for a short term profit boost.

Chris

Shorting Treasuries with Inverse ETFs

Hey guys,

I am not a timing or chartist expert, so my article was not designed to time the move or pretend that there was no risk.

However, for the reasons that I outlined, I believe that although the vehicle for playing this might be volatile, and yes, the compounding and volatility issues might erode your return, I still think that we are headed for something major here in the next few months, and I want to be ahead of that.

True that the spike in interest rates a few days back was too much too fast, thus why I am waiting for a pull back, but the mega trend is in place, and I think we'll reap the benefits soon enough.

Chris