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Sunday, February 01, 2009

Treasuries TLT - Bubble has been popped up - casualties to follow. TLT, TYX, TNX, FVX, GDX, DXY.


It is not Heaven and it is not safe in treasuries any more for sure. Battle is lost to Common sense, Gold is taking High after High and the only buyer could be Cayman Islands aka FED. Very weak technical picture, TLT could rally if DOW slips below 7500 to retest MA50, but in normal course of things water torture will in drifting lower, filing gap after gap down to August's lows. Casualties to follow, US Dollar will be the first. Players in this market are called best assets allocators in the world - like Bill Gross of Pimco, they must be positioning themselves to Inflation, Negative real rates and diminishing returns in Fixed income. It means more allocated to equities and hopefully for us protection in Gold from Inflation.

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