Bond rally nearing an end?

Discussion in 'Financial Futures' started by gharghur2, Jan 18, 2006.

  1. newbunch,

    If you trade online, there may be a formula that your broker uses to assess your ability to cover a short sale (i.e. your liquidity and size of your account etc.)

    they will give you that messege in leu of telling you that they dont think you know what you're doing....or that they dont think you have enough to cover in the event of a melt up...

    in short, they dont want to be on the hook if you cant cover etc.....

    I get the same treatment occasionally...
     
    #1861     Oct 6, 2006
  2. That's happened to me too, and I was already short!
    Guess there are a lot of Bond players out there that use the TLT as a hedge ???
     
    #1862     Oct 6, 2006
  3. Oh, disappointed. Thought you were putting on an explosion spread to the downside.
    Bonds have lost that loving feeling!
     
    #1863     Oct 6, 2006
  4. This has been written about here:

    "Shorting ETFs: The Little Guy Gets The Shaft Again"
    http://www.elitetrader.com/vb/showthread.php?threadid=48089

    Just curious, I'm not up on the financial ETF's. Is there an inverse bond ETF, i.e. does the reverse of the TLT? That would solve your problem. Actually according to the article, it would solve the problem for a lot of people.
     
    #1864     Oct 6, 2006
  5. #1865     Oct 6, 2006
  6. why not buy a deep in the money put on TLT?
     
    #1866     Oct 6, 2006
  7. True, but keeping in the spirit of the original post which was why he couldn't short the TLT, I wondered what option (pardon the pun) ... er...ah...what fund/ETF might be available to do the inverse.

    It turns out that these guys do:

    http://www.profunds.com/default.asp

    Not a bad idea.
     
    #1867     Oct 6, 2006
  8. I have had some luck by calling my broker to get a short sale done when the online interface gives me a "cant locate shares to short" yada yada
     
    #1868     Oct 6, 2006
  9. I was surfing around and found an interesting site that might be of some use....

    the site has put together a M3 money supply proxy using a number of sources as explained.....

    the Fed stopped reporting M3 in April since it made the dollar look bad....

    M3 from their work is roaring ahead at around a 9% rate

    http://www.nowandfutures.com/key_stats.html
     
    #1869     Oct 8, 2006
  10. Starting to look more and more like the top is in.
     
    #1870     Oct 10, 2006