Monday, April 18, 2011

Fade the S&P Downgrade of Treasuries (TLT)

Treasuries sold off this morning after S&P cut their outlook on U.S. debt. This was a good fade, because ratings agencies are always a day late and a basis point short.

Notice that Treasuries are back up on the day, and in a strong uptrend since early April.

4 comments:

Taylor Conant said...

Funny, April was the beginning date of the period over which people have been speculating the Fed might make an announcement that they're ending QE2 early or not following up with a QE3.

CP said...

If an S&P downgrade of the country is good for a rally, that really says something about Treasuries.

C. Fischer said...

Should we short Silver too?

CP said...

I think silver is a good short, yes.