With money in the pocket we could buy stocks. All these instruments are for speculation only. Speculation is only for people like us, people without money.
DVN is a beast. Sold my VLO and XOM and added to my DVN position. It's the biggest gainer for me along with USO and XLE. All picks by the master, Mr. Mannarino!
All those short sellers got their knickers in a bunch with today's action. If they start covering their shorts tomorrow there will be follow through in the market. Just what Greg is calling for.
First I buy a shortposition. Now I own it. When I close this shortposition I sell it. Same with longposition. First I buy a long position. When I close this longosition I sell it.
Hi Rich, based on Hank and Greg's explanations: As the 10 year yield goes up and the price of these yields goes down, we would expect money leave the stock market and into the bond market ( equilibrium bond yield , bond price and demand ) thus stock market should go lower. On the flip side As 10 year yield decreases and the price of bonds goes up , we would expect money moving into the stock market from bonds ( equilibrium of bond yield, bond price and falling demand for bonds) thus stock market would go higher : This is exactly what we are seeing at the moment
Note: We must pay attention not just the bond yield but bond prices as well as drivers of the debt market
When the yield on bonds rise that means that bonds are being sold with the money leaving the bond market usually going into the stock market moving the stock market higher.
So based on this , as Bond yields fall then this would mean the reverse also, counter intuitive ? As bond yields fall that would mean bonds are being bought and money leaving the stock market and into the bond market and thus stock market lower.
Looking at the market at the moment Bond yield seem to have fallen from of high of 3% ( I think its about 2.754% 27/05/2022 8.14 am GMT) but we are seeing stock market rising . Explain that as we should be seeing a reduction in stock market as stated :
Bond yield Rise Stock market rise and visa versa Bond yield fall then expect stock market fall
Memorial day weekend and the price of Gas smells like opportunity, gas up today
I’m up 28% on Devon since I bought and will be getting big fat dividends along the way!
Been selling naked puts on DVN as well. All expired worthless.
With money in the pocket we could buy stocks. All these instruments are for speculation only. Speculation is only for people like us, people without money.
Stock market investing is not investing. It is speculating whether you buy equities or sell options.
DVN is a beast. Sold my VLO and XOM and added to my DVN position. It's the biggest gainer for me along with USO and XLE. All picks by the master, Mr. Mannarino!
Me too. I smile every time I fill up the gas tank!
Thanks for all You Do.
Watch this scream higher and the people will be shaking their heads in confusion. They shook them out.
All those short sellers got their knickers in a bunch with today's action. If they start covering their shorts tomorrow there will be follow through in the market. Just what Greg is calling for.
They are already selling off their short positions today. That is why there is not even a small correction. Simply upwards.
A short position is closed by buying not selling.
First I buy a shortposition. Now I own it. When I close this shortposition I sell it. Same with longposition. First I buy a long position. When I close this longosition I sell it.
Short position; sell to open. Buy to close.
Long position; buy to open. Sell to close.
Like clockwork this shit goes UP on the weeks my biweekly 401k contribution drops. Nothing to see here. WTF
The banks are alive!
Thanks for the info Greg, really appreciate all you do!
👍
Household spending went up 0.9 % in April. More wiggle room on discretionary spending. Now go buy that new mattress on Memorial Day.
Thanks Greg !
Thank you!
Yes, Hank I am just trying to come up with a little poem to describe the action. All good!
Hi Rich, based on Hank and Greg's explanations: As the 10 year yield goes up and the price of these yields goes down, we would expect money leave the stock market and into the bond market ( equilibrium bond yield , bond price and demand ) thus stock market should go lower. On the flip side As 10 year yield decreases and the price of bonds goes up , we would expect money moving into the stock market from bonds ( equilibrium of bond yield, bond price and falling demand for bonds) thus stock market would go higher : This is exactly what we are seeing at the moment
Note: We must pay attention not just the bond yield but bond prices as well as drivers of the debt market
So, Greg can we say that when the 10-year yield goes higher Stocks will go along for the ride! I am not a poet.
When the yield on bonds rise that means that bonds are being sold with the money leaving the bond market usually going into the stock market moving the stock market higher.
So based on this , as Bond yields fall then this would mean the reverse also, counter intuitive ? As bond yields fall that would mean bonds are being bought and money leaving the stock market and into the bond market and thus stock market lower.
Looking at the market at the moment Bond yield seem to have fallen from of high of 3% ( I think its about 2.754% 27/05/2022 8.14 am GMT) but we are seeing stock market rising . Explain that as we should be seeing a reduction in stock market as stated :
Bond yield Rise Stock market rise and visa versa Bond yield fall then expect stock market fall
Please explain Hank , am I missing something ?
Could bond yield price be the actual driver as opposed to the yield itself ? At lower yields price would be higher , is this what is the true driver ?
Bond yields move opposite bond prices. As yields go up their price goes down. As yields go lower their prices rise.
Really appreciate these updates. Thanks
I'm not paranoid I'm observant. ;-)