September 20, 2017
Eurodollars, which reversed to the downside 8 trading days ago, have now dropped about 20 ticks…I THINK THE RESUMPTION OF THIS BEAR MARKET HAS BEGUN…AND NOW IS THE TIME TO BE ESTABLISHING POSITIONS WITH AN EXPECTATION OF SEEING THIS CONTRACT DROP AT LEAST ANOTHER 60 TO 80 POINTS.
If you are on the sidelines, I urge you to shed your fears of losing and take a position now…BEFORE this thing truly gets away.
This is what interest rates actually ARE doing…which is moving steadily higher…
And to be clear, adding another 1/2% here would still NOT be a big move in rates. Do NOT forget that these rates are the lowest in modern history and do not let the scale of this two year chart fool you into thinking that even 2.4% might look high…IT IS NOT.
Believe me…I pretty much LOST my ass in this trade with a ton of September options having expired worthless…And maybe I am just a dumbass old hack commodity broker who doesn’t know any better, but I have been here before…and I know that one thing you can’t do in this stuff is “blink”. You can’t blink. You can’t “watch it.” Sometimes in this game, TO WIN, you absolutely have to forget what HAS happened and go forward with the game plan…which oftentimes DOES mean putting more money on the table. I certainly DON’T know if this is going to work but I am 150% convinced it will…and I am right back on the horse. INTEREST RATES ARE GOING UP? To me it’s not even a question of “if”, it simply how fast and how big…and every iota of my experience tells me they WILL be going up MUCH faster than the markets are currently even close to indicating.
I say our economy, and the economies of the rest of the world, are all in varying stages of exploding on the upside…There isn’t a business I can think of that is doing anything but expanding…and 1.4% SHORT TERM INTEREST RATES ARE MILES AWAY FROM WHERE THEY WILL BE IN ANOTHER YEAR. I MEAN, REALLY, DO NOT FALL INTO THE TRAP OF BELIEVING ALL THE WALL STREET CLAPTRAP THAT SUGGEST THEY “MAY GO UP A LITTLE”, or that 1.4% rates are even close to what would be considered normal.
It is NOT too late to get on…
I can’t say or do any more than this…I keep saying it, but it makes me absolutely sick that some of you have totally given up on this idea…
Call me if you want to do something…
All option prices in this newsletter include all fees and commissions.
The author of this piece currently trades for his own account and has a financial interest in the following derivative products mentioned within: Eurodollars