Good morning, Slopers, and welcome to a new week. The earnings season is finally going to start ramping up, and of course there’s that Putin/Trump meeting happening, so it should be an interesting few days.
There aren’t exactly a lot of fireworks this morning, so let’s take a step back and look at a few basics. First, the bonds below remain completely intact for what I am hoping is a sea-change in the world of bonds and rates. The uptrend, having been broken, was challenging with a multi-week rally, but this mercifully seems to have been repelled where I’ve put the arrow. My only two options positions are substantial stakes in XLU and XLF January 2019 puts, and obviously the XLU is quite dependent on a strengthening interest rate market. My opinion is that we’ll see bond prices tumble away from this resistance point.