With the lift off in yields, the spread between the 2 and 10 yr bonds are blowing out — now at 125bps. This spread was 70bps a short while ago. Every basis point it widens is pure profit for the banksters and their diabolical schemes.
As a result, financials are lifting off again, extending the Wagnerian operaesque dramatic gains enjoyed last week. Many of these banks, which have been dead money for the past 5 years, are higher by double digits over the past 3 days. The move higher caught a lot of people by surprise and the momentum is now causing shorts to run for cover.
Who would’ve thought Goldman Sachs would be higher by 15% in less than one week after a Trump victory? The market is the eternal humbling mechanism, filled with surprises.
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obammy will exit stage left at ATHs, Trump will be left holding a gargantuan sack of hot shit…
the fed sitting discussing policy since years and all of sudden the market moves the rates, sweet.
Exactly why I ignore the news and just trade the charts in front of me. Of course this one was a tough one to catch. But it serves as a standing reminder that whatever we think about the future is absolutely meaningless. Best you can do is to go go go with flow.
filled with surprises.?
The ‘financials’ surprise had been brewing since summer. I’ve been all over it:
http://ibergamot.blogspot.com/2016/09/dart-fin-experiment.html
Positions, opened in September, would be up 15-25% by now…