Today we are bearing witness to a complete repudiation of the risk averse trade. For the first time in months, bonds are getting crushed. The ark is taking on considerable water, with TLT off by more than 2.
The forex unwind is more severe. The pound is soaring, while the yen is plummeting. Both of these events are great for stocks.
Lastly, we’re seeing gold getting hit as WTI soars.
All of this has formulated a toxin for short sellers that is undeniable. Markets are soaring to new highs and the momentum is gaining traction.
The big fears have always been tucked away in forex and bonds. With those trades unwinding, stocks will continue to lift and crush both the purses and spirits of overzealous bears.
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The rally will not end until everyone who has prudently hedged or who has speculated on decline is thoroughly punished. Pain is up.
Sold SPY puts today and bought GLD puts. Here’s hoping the morons in power can continue the pain.
I like David Kostin, but 2% return in 2 years call is very bold.
Fuck this Goddamn bullshit.
You guys asked for this. Giving away control of your markets. ‘Careful what you wish for’.