And The Yield Curve Flattens Below 30 Basis Point. Game On!

July 4, 2018 0 Comments

Today the yield curve dropped below 30 basis points. A while ago I posted on StockTwits that I was bearish banks. You can read the whole conversation by clicking here. Since that time we have had bank earnings (they were good), increases in dividends, share buy  backs, and very recently the stress tests. Where have banks gone? Down.

Here is the current yield curve.

Pull up charts of banks like $WFC, $JPM, $BAC, $GS, $C, $WFC, and $MS. Pull up a chart of almost any bank in the $XLF and you will see the trend.

In the private twitter feed we trade CITI quite a bit. ALL the recent trades have been longs, but we have been doing quick in and out trades for 20-60% gains. In fact Tuesday we went long $C calls and was luck enough to sell them on the gap up before it just sold hard.

More to follow on this topic. Stay tuned.

Post your comments in the comments box. I want to hear what you have to say. Are you bullish or bearish?

UPDATE 7/8: Since the original post I got a lot of hate mail and tweets. I get it. Many think I am a perma-bear (not true). Many think I have a huge short in banks (not true). The fact is I am playing banks short term to long side right now ahead of earnings.

What I was trying to convey in my original post is that there are certain macro events in this crazy FED induced environment. No more. No less. I get the fact that ultimately price moves based on traders emotions to news, earnings, their own thoughts, what the herd is doing, among other things. I get that.

Here is a trade I hand fed members of Stock Twits –


I said I was buying $GS calls into NFP @ 120. They popped to 300 the very next days. Almost a 200% win. Here is the tweet from Stock Twits < just click it. It wont hurt you. I promise.

We also took $C calls longs in the ELITE FEED. Check out the chart below:

Alerted at under 50 cents and they ran to 130. Another easy trade.

Some days I wonder why I am crazy enough to charge $17 a month giving out my trades to members when I am making way more than that taking my own trades.



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