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.
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4 comments:

  1. Taylor ConantApril 18, 2011 at 12:51 PM

    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.

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  2. CPApril 18, 2011 at 3:07 PM

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

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  3. anony mouseApril 20, 2011 at 12:59 PM

    Should we short Silver too?

    ReplyDelete
  4. CPApril 20, 2011 at 1:08 PM

    I think silver is a good short, yes.

    ReplyDelete