PeakTrader.com

[arthur]

TLT (long-term bond ETF) may have created a "blow-off" top Fri. Consequently, there may be a pullback to the 10 or 20 day MA sometime next week. TLT was heavily shorted and many of those shorts were covered Fri. Currently, there may be little risk with Feb in-the-money puts. Both the bond and stock markets turned a negative employment report Fri into a positive Fed tightening pause. However, perhaps, next week, the market will realize this assumption is too optimistic. So, perhaps, large gains can be made buying Feb 93 or 92 puts Mon morning, if TLT opens a little high.