This is the Blow-Off
We will be closely monitoring events over the next three days. In any event this is it, so it will be better to be early than late. We will try to keep you on top of things.
The long bonds and gold vs short stocks and commodities has been a good way to walk into this blow-off.
In this trade since June 5th, Bonds are up 9.8%, gold is up 20.8 %, while the S&P is up 4.2 % and Commodities are up 6.4 %. Everything was up, not what we expected, but in terms of galvanizing the blow-off, it could not be better. The total trade is up 5.0 %, a good edge going into this stage.
Here is our Trading plan.
- Sell out the gold position
- Sell out the bond position
- Put the money into Shorting the Nasdaq 100
Out of gold at 2039 and short Nasdaq at 11136, TLT Bond ETF 170.26.