Money is pouring from government debt, and not wasting any time bidding up the price of a Joule.
I’m not sure anybody noticed, but the backwardation on 30 year treasury futures, has become more grave over the last month or so, going into expiry of the december contract. Read the tea leaves as you like. Future demand for government paper, is declining.
Amazing, in the last few days of 2009, the 9th of my twelve market predictions for ‘09 is coming to fruition…
ProShares is getting sued, by the traders who use their products.
…has been awkward over the last two sessions. In light of this, and the charts, I see rates lower, commodities higher, and equities lower over the next 2 to 5 sessions.
If equities pierce the upper resistance, all bets are off for bonds. But money flow should support commodities for the next few sessions at least.
My position is leveraged and long oil here, collecting heavy theta on treasuries with a moderately bullish stance, and moderately short equities collecting some minor premium there.
Good luck.