After waiting many months (if not a couple years), I’m going to finally suggest it’s time to “start” shorting U.S. Treasuries. Because there’s still a decent possibility rates can fall another 50 basis points before rising in the next few years many multiples of that (when Greece and Europe move past being the opening act and the U.S. becomes the real horror show), I’m going to suggest holding back fire power and not use ultra leverage shorting strategies.
For now, I’m going to add the following two ETFs to my “Tracking List”:
ProShares Short 20+year Treasury symbol TBF on the NYSE $28.23
ProShares Short 7-10 year Treasury symbol TBX on the NYSE $32.55
Taking such a bearish stance is not intended to be right in the next month or three, but on the belief bonds shall be the worst investment over the next decade.
I fully expect the overloaded boat of gold bears to do all they can to get gold back under $1,600. If by the close on Friday gold is higher than the close of last Friday, I shall almost certainly believe the correction is over.
I wish I could say the same for the junior resource market. While the current show here is much lighter attendance-wise than in quite some time, both the newsletter crowd and companies are either cautious or outright bearish, and the comments I’m hearing I heard at previous bottoms; there’s just too much technical and fundamental damage to suggest a “V”or “U” bottom. L is the most likely bottom (we go mostly sideways for the balance on 2012).