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TLT

TLT - 20+Year Treasury Bond ETF s/r zonesHello traders, Description of the analysis: Strong s/r zones. If the first support will be broken, it should mean support for shares. The VIX index, as the main indicator of panic in the markets, is also slowly beginning to gradually return to its normal values. Market ties that were valid yesterday may not be valid tomorrow, so invest and trade wisely and carefully. About me: Hi, my name is Jacob Kovarik and I´m trading on stock exchange since 2008. I started with a capital of 3000 USD. My first strategy was based on OTM options. (American stock index and their ETF ). I´ve learnt on my path that professional trading is based on two main fundaments which have to complement each other, to make a bussiness attitude profitable. I´ve tried a lot of techniques and many manners how to analyze the market. From basic technical analysis to fundamental analysis of single title. My analytics gradually changed into professional attitude. I work with logical advantages of stock exchange (return of value back to average, volume , expected volatility , advantage of high stop-loss, the breakdown of time in options, statistics and cosistent thorough control of risk). At the moment, my main target is ITM on SPM index. Biggest part of my current bussiness activity comes from e mini futures (NQ, ES). I´m trader of positions. I´m from Czech republic and I take care of a private fund (4 000 000 USD). During my career I´ve earned a lot of valuable experience, such as functionality of strategies and what is more important, control of emotions. Professional trading is, in my opinion, certain kind of mental training and if we are able to control our emotions, accomplishment will show up. I will share with you my analysis and trades on my profile. I wish to all of you successul trades. Jacob
NASDAQ:TLT
by Jacob_Kovarik
May 3 Market Update | Technical, Fundamental, NewsDescription: An analysis for the week ahead. Points of Interest: 4/29 Rejection; 2780 Gap; 5/1 Split b-Shape Profile. Technical: Other broad market indices, such as the Nasdaq have shown extreme relative strength in the weeks prior, with the /NQ spending a significant amount of time building value above it’s 61.8% retracement, a bullish sign. Indices such as the NYSE Composite paint a picture of relative weakness. On the last two days of April, the S&P 500 failed to break into a low-volume area, a space that often serves as strong resistance or support. Wednesday trade seemed a tad excessive, putting in a p-shape profile on higher volume, a sign of strong long-side participation and short-covering. Technically, the market ended its advance from the March 23 low, as signaled by the failed break higher from last-week’s balance zone (more in last week’s post) and Friday’s gap open. Friday’s gap (a signal that we’re out of balance) was formed by larger players that perceived value away from price. The right move at the open was to wait since many gaps are filled in morning trade. Obviously, responsive participants failed to close the gap and the market continued lower to a high-volume area. Friday’s b-shaped, multi-distribution profile points to liquidation of old longs and emotional participation. Additionally, the profile is split and rounded at the bottom (i.e., market got too short). Since the market is too short, I’d expect some sort of quick snap higher, up to the low-volume split (i.e., resistance) or 2860. The low is a structure that will most likely be repaired in subsequent sessions. The broad market appears ripe for a pullback. In case of upside, target is 2860. On a continuation lower, targets include 2787 (convergence of significant references), 2633 (top of prior-balance), and 2566 (half of the 3/23-4/29 advance). If the market reverses and overtakes the initiative activity that created the gap, then sentiment has changed. Scroll to bottom of document for non-profile charts. Fundamental: Key Events: April Employment; ISM Non Manufacturing; ADP Employment; Trade Data; Earnings. Overwriter flows to cut volatility; if gamma flips long, then speculate with cheap calls. bit.ly If the market slips into short gamma, then it’s possible to get another push lower. bit.ly Yield volatility further muted due to success of Fed action. bloom.bg Investor confidence high despite lower sentiment amongst business owners. bit.ly Alongside soaring cloud usage, new contracts from bigger clients drop-off. reut.rs U.S. threatens tariffs on China over virus outbreak. reut.rs Sprint lost 350K phone subscribers last quarter. reut.rs Britain hires Morgan Stanley for help on its aviation rescue plan. reut.rs Fed, ECB, BoJ hone in on improved lending, bond-buying. bit.ly Main Street Lending program improves access to “bottomless supply of cheap capital” (bit.ly). ECB cut rates and introduced new facilities to ensure financing of the real economy. bloom.bg Gold and natural gas to benefit in the face of economic weakness. bit.ly Increased bond issuance will come alongside massive future downgrades. bit.ly Even after the reopening, the economy will be “shackled to only 25-50%” (bit.ly). Fed action has diminishing returns; “I fear the effects will be short-lived” (bit.ly). Despite the downturn, startups are hiring and raising funds. bit.ly U.S. tells Saudi Arabia to cut oil supply or lose military support. reut.rs OPEC+ cuts for May, June total 9.7 million barrels per day ($USO, $USL, $DBO). tmsnrt.rs Boeing ($BA) and Embraer ($ERJ) deal scrapped, freeing up cash. bit.ly Auto loan extensions to slow note payments, increase borrower distress. bit.ly China reforms for small banks lowers risk from coronavirus disruption. bit.ly Great Migration: Coronavirus to cause shifts in population density. bit.ly Sentiment: 30.6% Bullish, 25.4% Neutral, 44.0% Bearish as of 5/1/2020 (bit.ly). Gamma Exposure: (Trending Lower) 721,282,138 as of 5/1/2020 (bit.ly). Dark Pool Index: (Trending Higher) 48.3% as of 5/1/2020 (bit.ly). Index Analysis: $SPX: TVC:SPX $NDX: TVC:NDX $RUT: TVC:RUT $DJI: TVC:DJI $NYA: TVC:NYA $UKX: TVC:UKX $NI225: TVC:NI225 $HSI: TVC:HSI Futures Analysis: /GC: AMEX:GLD /CL: AMEX:USO AMEX:DBO AMEX:USL /NG: AMEX:UNG /ZB: NASDAQ:TLT Disclaimer: This is a page where I look to share knowledge and keep track of trades. If questions, concerns, or suggestions, feel free to comment. I think everyone can improve, especially me. In no way should this post be construed as investment advice.
CME_MINI:ES1!
by Physik
April 26 Market Update | Technical, Fundamental, NewsDescription: An analysis for the week ahead. Points of Interest: 2730-2845 Balance Zone; Targets 2930, 2630; CBOE:VIX at 36. Technical: Nasdaq leading to the upside, with a complete retracement of Thursday’s news-driven sell-off. Market is balancing, leveraging time to correct, rather than price. Composite profile (2/19-4/24) POC at 50% retracement. Additionally, YTD VWAP lies nearby, a clue to why prices are so rotational here. Read more about VWAP here: bit.ly Despite terrible news, the market held up fairly well. On 4/17, /ES met it’s measured move, piercing into an area of low volume which served as resistance. Market quickly liquidated to the 2730 area and was not met with new selling. Instead, in subsequent trading, prices and value shifted higher, above the 50% retracement. Aside from remaining in balance, the market could extend directionally, or extend and return to balance quickly. Taking out 2730, downside target at 2630, a low volume area that could serve as support. Breaking above 2845, also an area of low volume on the composite profile, target 2930. Scroll to bottom of document for non-profile charts. Fundamental: Key Events: Central Bank Meetings; Initial Claims, Earnings; GDP; Home Sales; PCE; Consumer Confidence; Personal Income; Construction Spending; Vehicle Sales; ISM Manufacturing. Who’s Winning: Remote Work (e.g., Zoom, Slack, Microsoft, Facebook), Cloud (e.g., Amazon AWS, Microsoft Azure), Telemedicine (bit.ly). Tickers: NASDAQ:ZM , NYSE:WORK , NASDAQ:MSFT , NASDAQ:AMZN Who’s Losing: Software (e.g., Google Chrome), Video Games (e.g., Sony), Hardware, Camera (e.g., GoPro), Manufacturing (e.g., Boeing, Ford, GM, U.S. Steel), and more (bit.ly). TICKERS: NYSE:SNE , NASDAQ:GPRO , NYSE:F , NYSE:GM , NYSE:X Gamma Trap: Despite terrible news, major market indices ended the week practically unchanged. This comes as SPX 2,800 emerges as the neutral gamma zone. A close above $2813 SPX would “push dealer gamma in the green, creating a feedback loop whereby higher prices result in even higher prices as dealers are forced to chase the market higher” (bit.ly). TICKERS: AMEX:SPY , TVC:SPX The Bear’s Case: “In view of how the equity market was recently up by 25.6% from its March 23 low, it should be mentioned that during the equity market’s long trek to its March 2009 trough, at one point (on January 6, 2009 to be exact) the equity market was up by an even greater 26.3% from its then low of November 20, 2008. As it turned out, the U.S, equity market sank by 27.3% from January 6, 2009’s misleading high to March 9, 2009’s bottom. Thus, even a 26% jump by the equity market from a bottom does not necessarily obviate the impending formation of an even lower trough.” Read More Here: bit.ly The Bull’s Case: "The market is loudly saying the Fed Bazooka worked to turn the tide, and risk assets are going higher.” (bit.ly). "If this bear market was much shorter than other , it’s because the speed and magnitude of Fed actions." "Negative data is the reality around market bottoms. If this rally continues, the negative data will become less bad on the margin over the next several months. In 2009, the market started rallying in March and the non-farm payrolls report didn’t turn positive until November." "If the Fed has successfully started to reflate the economy as many assets suggest, the bond market will need to confirm this trend." "If bond yields don’t start moving higher in the next 4 weeks, this would be a major signal that the reflation trade is not working." Crisis Averted: In New York, the risk of hospital overflowings was never realized and states are showing a genuine interest in getting back to work. "The scenes in Michigan and elsewhere show genuine hunger to resume working." "Wuhan gives us clear evidence that things can reopen within 90 days. Again, this is much better than the worst scenarios." Read More Here: bit.ly Oil: Dislocations within physical markets remain, a negative for short-term price volatility and the spread between WTI and Brent. Adding, “US crude prices below $30/barrel (bbl) in the second quarter of 2020, and oil prices beneath the cash cost of production will lead US oil and gas producers to keep announcing deep cuts in capital spending. Such spending cuts will accelerate the decline in US oil production in 2020 and into 2021,” a downside for oil prices in 2020, even with the expected decline in supply (bit.ly). Moody’s Energy Downgrades: bit.ly Citi on the ‘New World of Petroleum’: citi.us Short puts in /CL worth the risk? Check out the statistics here: bit.ly What Oil ETFs To Invest In (HINT: Avoid $USO): bit.ly TICKERS: $CL1!, $DBO, $USL /CL To /GC: “Realistically, a dramatic breakdown in the gold market (which might actually present as a super-spike) can’t be viewed as highly likely. But then again, an infectious disease epidemic wasn’t included in most 2020 pricing models either, nor was negative-priced crude. While it may not seem likely, one can see how a dislocation in the gold market, one starving for physical gold, could result in a strong, unexpected rally—the exact opposite of what has occurred in a flooded crude oil market.” Read more here: bit.ly TICKER: $GC1!, $GLD Steel: “The U.S. steel industry has fallen into its most severe downturn since the 2008 financial crisis. United States Steel Corp., ArcelorMittal and other steelmakers are ratcheting back output and shedding workers, anticipating that orders and prices will fall further” (bit.ly). Trade: “There were high hopes that China's commitment to $200 billion of increased spending on U.S. agriculture, energy, manufacturing and services as part of the ‘phase one’ trade deal would help make farmers whole. But as the virus outbreak rattled Chinese demand, those planned purchases evaporated” (bit.ly). Treasury Run: Expectation for a sustained rise in Treasuries (mostly longer-dated maturities) remains as economic rebound expectations become more delayed (bit.ly). Yields: “An unfolding global recession will rein in Treasury bond yields. As long as the global economy operates below trend, the 10-year Treasury yield may not remain above 1.25% for long. Until COVID-19 risks fade, substantially wider credit spreads are possible” (bit.ly). Bond Credit: COVID-19 to strain sovereign and bank credit quality in Europe, a negative for covered bond credit. On the other hand, “covered bonds will continue to benefit from systemic support amid the coronavirus disruptions - as occurred during previous crises - which will help support overall credit quality” (bit.ly). Earnings: Boeing, Apple, Alphabet, Facebook, Exxon, Chevron to post slowdowns or losses in certain categories. Microsoft, Spotify, Qualcomm and Amazon earnings likely to show gains in certain categories. Read More Here: tmsnrt.rs TICKERS: NYSE:BA , NASDAQ:AAPL , NASDAQ:GOOGL , NASDAQ:FB , NYSE:XOM , NYSE:CVX Unemployment: True number of people unemployed between 32-70 million people (i.e., 20-45% unemployment rate), according to Axios (bit.ly). Liquidity: Desire to assure adequate liquidity during has prompted a temporary surge by IG bond offerings (bit.ly). Typically, alongside a rise in corporate bond issuance comes the refinancing of “outstanding short-term debt, such as commercial paper, as long-term fixed-rate bonds in order to eliminate the risk of not being able to roll-over very short-dated credit market instruments. Once the recession subsides and the return of profits growth is visible, the imperative to buttress liquidity fades and IG bond issuance sinks as was the case during the 12-months-ended June 2010.” Rescue Package: House approved a $480 billion coronavirus rescue package that provides aid to SMEs and hospitals. Additionally, the bill will provide a $320 billion infusion for the Paycheck Protection Program (PPP) which ran out of money last week. Read More Here: politi.co Check Out Moody’s PPP Breakdown Here: bit.ly Hubei: The epicentre of the coronavirus outbreak had its economy shrink by 40%, the largest drop for any province since the founding of the People’s Republic of China in 1949. Consumer Sentiment: “Morning Consult finds respondents are showing increasing optimism about the future, as the number of people who say they expect to be worse off in a year has consistently declined,” since sentiment hit a low April 7 (bit.ly). Money Market Flows: “A record $4.65 trillion is now held in money market funds. That's around $700 billion more than the peak level seen during the 2007–2009 global financial crisis” (bit.ly). Farming: U.S. family farmers filed 595 bankruptcies in 2019, up from 498 filings in 2018 (reut.rs). Adding, the USDA announced a $19B support program for farmers and ranchers, helping soften the blow to demand for many agricultural commodities (bit.ly). Moreover, the two prior pieces of news come alongside the closing of major meat plants across the United States, which may net higher meat prices in the long-term (bit.ly). Note: “The Farm Credit System is also strongly capitalized, a credit positive, in the event that its credit costs rise materially” (bit.ly). TICKERS: AMEX:DBA Startup Funding: Crunchbase projects $34.5 billion was invested in North American startups in Q1 2020, up 2% year over year. The increase is attributable to late-stage venture funding. Read Here: bit.ly Sentiment: 24.9% Bullish, 25.1% Neutral, 50.0% Bearish as of 4/25/2020 (bit.ly). Gamma Exposure: (Trending Lower) 1,264,910,712 as of 4/25/2020 (bit.ly). Dark Pool Index: (Trending Lower) 44% as of 4/25/2020 (bit.ly). Index Analysis: $SPX: TVC:SPX $NDX: TVC:NDX $RUT: TVC:RUT $DJI: TVC:DJI $NYA: TVC:NYA $UKX: TVC:UKX $NI225: TVC:NI225 $HSI: TVC:HSI Futures Analysis: /GC: AMEX:GLD /CL: AMEX:USO AMEX:DBO NASDAQ:USLV /NG: AMEX:UNG /ZB: NASDAQ:TLT Disclaimer: This is a page where I look to share knowledge and keep track of trades. If questions, concerns, or suggestions, feel free to comment. I think everyone can improve, especially me. In no way should this post be construed as investment advice.
CME_MINI:ES1!
by Physik
T-Bond futures peakedThe weekly chart shows the recent surge is likely topping, and might start falling between now and the next 3 weeks probably. Fundamentals favor a decline as governments go into spending binges to counteract the virus induced crisis. @timwest pointed out this short idea recently, props to him for spotting it. I do like how wild the disconnect vs #Gold is now, might be interesting to look into trading the spread soon. As a sidenote, the asset classes that sold off while this rally was occurring might turn around by the 2nd week of April (like stocks and #Bitcoin). Cheers, Ivan Labrie.
CBOT:ZB1!Short
by IvanLabrie
OPENING (IRA): TLT APRIL/MAY 159, 161/190 CALL DIAGONAL... for a 1.83 credit; delta/theta -33.33/3.30. Notes: Here, overwrote 20 delta calls in April and May late in the trading session to flatten net long delta'd covered calls I have on in TLT and to add a little something something to what is now a low yielder from a dividend perspective. As you can see by the chart, we're basically at all time highs since instrument inception, so it wouldn't be the worst stand-alone short I've ever undertaken, particularly since it's out-of-the-money. However, it needs to be looked at in tandem with the covered calls as an overall position and, as such, the entire show is still net delta long (i.e., primary covered calls plus this setup). Additionally, I bought the May 190's in a number of contracts equal to the total number of short call contracts to act as throwaway longs, not only to bring in buying power effect, but to get around the general prohibition against selling naked long calls in a cash secured environment (they were .07 at the mid price, so I'm not giving up much).
NASDAQ:TLTShort
by NaughtyPines
GOLD USD JPY WIP TECHNICAL ANALYSIS pure TA so the question is does Gold follow $WIP or $JPY as we can see the $DXY is very strong and I anticipate more strength in near future if you Follow WIP it seems to be the leader in Gold/JPY the recent rise in dollar and major drop in WIP indicates a bad sign for gold I think gold will follow WIP down along with the JPY as the DXY gets stronger I expect the USD to break to new highs with liquidity crisis but eventually when the FED gets control of the dollar thats when I see opportunity in GOLD when it falls back down to what I expect to be around $1100-$1300 in the coming months until the World Dollar Liquidity crisis is under control gold will fall USD will rise
COMEX:GC1!
by bmoneytree