17Jun11:15 amEST
A Possible "Home Run" Trade Idea
Back on December 27th, 2021, I sent out the following video in an email to VIP Members inside Market Chess Subscription Services. In the VIP service, we focus on long-term investing plays and strategies, as well as the occasional special situation like the one I outlined below for Treasuries.
At the time of this video, TLT was trading at $148.88. It hit a low this week of $108.11.
Going forward, and to make this actionable in the current moment, I still view the risk of rates rising rapidly which means TLT continues to be vulnerable on the short side (as TLT goes down, rates go up) for the remainder of 2022 and, perhaps, beyond. TLT is currently bouncing to end the week, and I expect the bounce to fail within short order.
I have also included the text of the email to VIP Members, below.
Enjoy your long weekend.
Dear Valued Market Chess VIP
Part of your service includes rare, special situations which I see in markets.
Headed into 2022, compared to other years especially, not quite as many market players and pundits are taking higher rates seriously.
However, as I explain in the following video, with The Fed changing monetary policy gears, I expect the bond market to go through a major sea change itself next year, lending itself to an asymmetrical risk/reward trade setup.
I hope you find the video useful, and enjoy the remainder of the holiday season.
Best,
Chess
Founder and President of MarketChess.com
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