(8-17-14) Long Bonds Continue To Advance In Line With Our Expectations, as SPX Is Turned Back at the Magic Shill Level of 1960!
We had warned in our previous week's missive to prepare to get short the spoos again on the bounce off the bottom.
Note that the CNBC shills have promised the Unwashed a march back to 1960 in the spoos and indeed Friday morning when the spoos were turned back from the 1960 level, the bells and whistles were sounded.
We had put out an emergency shorting recommendation in the Sep. spoos at 1958. We sold them there ourselves, covering on our standing order at 1943 as Unwashed sell stops pounded the spoos lower.
Also we had warned that higher prices were coming in the Bonds. A good 10 and 30 year auction combined with overseas fear bid related demand forced the Bonds higher.
We had put out an emergency buying recommendation on the close Thursday at 140 and had a standing sell order in at 141.08. That trade worked out in Friday's session.