Exxxxxxx-cellent

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I’m going to make this quick, since I need to get organized before the market opens. Just a few quick thoughts:

  • I am delighted that interest rates are soaring. Until recently, I really didn’t think much about interest rates or actionable trades around them, but lately (as some of you, particularly Slope Plus folks, probably have noticed), I’m kind of obsessed with them. I am very short, and the concentration is in stuff like HYG, JNK, and (in a big way) TLT. So seeing ZB in free-fall right now is gratifying..
  • Bulls were very excited early yesterday about the pop in ES and NQ. I have no idea why the mere fact Draghi would say interest rates would stay low would have this effect, but it doesn’t matter whether I understand or not – – they did go up. Bulls were egged on even more by the jobs report this morning (which most people interpret as America growing jobs, but a deeper look shows that more and more people are simply giving up looking for work). However, as I’m typing this, the entire gain from Draghi and the jobs report is already wiped out!
  • I “should” have been terrified yesterday. I have 100 – ONE HUNDRED – short positions. God knows the comment section was full of bulls going on and on about how stupid it was to be short (cough Jesse Livermore cough). And the bulls were crowing all over the place. But I wasn’t scared; I was excited. Perhaps what we’re seeing this morning thus far helps explain why.

Oh, and one last thing. I’m short gold. Because, like Old Turkey says: it’s a bear market.

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