Here’s Another Important Gap

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Well, I’ll shut up about the oil gap and turn my attention to something even more important: bonds. Treasury bonds have been roaring higher all week, and that’s not great for me, because my entire options portfolio is oriented toward stronger interest rates. (IYR, TLT, XLU). Relief may be at hand, however. The gap at 120.28 is powerful, and my view is that within a month from now, we’ll have pushed below even the lows we saw earlier in May.