The abject failure of yesterday’s seven year Treasury bond auction and the crash that ensued has enabled the year-to-date return for my Macro Millionaire trade mentoring program to soar to a new all-time high of 43%. The 30 year bond plunged a staggering six points from the previous day’s high. Yields on ten year government paper have ratcheted up 50 basis points in just a few weeks, from 1.80% to 2.38%.
It’s a good thing that my only position going into the collapse was a major holding in the (TBT), an ETF that profits most from exactly this type of scenario, which rocketed some 10% today. Using the leverage embedded in this popular ETF, some 40% of our capital is devoted to short Treasury bond positions. This move comes on the heels of my October 8 call to cover all shorts in “RISK ON” assets, including stocks, commodities, oil, and foreign currencies, with a major fall rallies imminent.
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