November 30, 2017
This is what I think is some A-B-C common sense…with just a few comments and a few pictures…
There is not a single Fed Governor that saw this coming. PERIOD.
The Dow has rallied 6000 points in the last year…2500 points in the last 3 months…and 1000 points in the last 11 trading days…AND counting?
If the Stock Market is any barometer at all of the US Economy in the next 6-12 months, it is predicting ENORMOUS activity in 2018.
So…if you still believe the claptrap about rates just slowly moving higher, I think you must be in lala land.
I BELIEVE INTEREST RATES WILL BE EXPLODING HIGHER BETWEEN NOW AND MID-YEAR 2018.
The truth is, I think this contract, which goes down when interest rates go up, is going to be AT LEAST a full 100 points lower by the time we get to its June 18 expiration.
And I think this option has a TON of time and big leverage…
The point is, EVERYBODY who is at all responsible for “managing” interest rates has TOTALLY missed what is actually happening in stocks and the economy for the ENTIRETY of 2017…And I say there is NO WAY that whatever “plans” they did have are not already being altered in the back rooms of the interest rate powers-that-be.
ONE MORE TIME…NOBODY AT THE FED SAW THIS COMING…THEIR PLAN TO RAISE RATES SLOWLY WILL BE “ADJUSTED.” As I have written for months, I have seen this script before…where rates go up MUCH faster and bigger than ANY of the financial crowd ever thought possible.
Get back on the horse. It is NOT too late…Call me.
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