We are lifting our hedges and observing a couple of signals. First, above the basing point has advanced in the SPX, and so the stop has advanced, as drawn. This is the wave low stop. The new high stop looks OK to us.
Then the euro looks headed higher, so we are stepping into what is a small position now.
As the horizontal line indicates there is some resistance above here, and the position should be stopped 2% under the September low.
We have tried to short the TLT 20 years several times and should have been more patient and persistent. We will be in our next incarnation. In this one the blood runs too hot, the news runs hot and cold and the passions are always boiling. Aside from that total tranquility. So we’re buying the TMV. We don’t necessarily think this is for all readers. It is a leveraged short and readers may prefer something less volatile — the TBF for instance. The TLT chart is of course the opposite of this.
As for us personally we will keep doing what our mother told us not to do in all cases.
Busy, busy, busy is what Bokonanists say when they look about them at the world running hot and cold. Pace Kurt Vonnegut that most wonderful of satirists.