Trade Alert – (TBT) April 8, 2013

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ‘look over’ John Thomas’ shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen.

Trade Alert - (TBT)

Buy the ProShares Ultra short 20+ year ETF (TBT) at $60.30 or best

Opening Trade


expiration date: none

Portfolio weighting: 20%

Number of Shares = 330

I’m happy to short a ten point rally in the Treasury bond market, even if Ben Bernanke persists in buying $85 billion a month in paper. That gave us a ten-point dip in the (TBT), the 200% leveraged short bond ETF.

With this security we do have a cost of carry of around 50 basis points a month, so you really only want to get involved after a major sell off, because you are short double the Treasury coupon, plus the management fee.

I still think we are putting a very long-term ragged top in the Treasury market that could last years. For the shorter term that should give us a yield range of 1.70%-2.05%. So buying the (TBT) here at a 1.72% Treasury yield is a pretty good deal

Here are the specific trade you need to execute this position a 20% weighting:

Buy 330 shares at ……………$60.30/share or best

TBT 4-8-13