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:
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.
If an S&P downgrade of the country is good for a rally, that really says something about Treasuries.
Should we short Silver too?
I think silver is a good short, yes.
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