Wednesday, March 14, 2012

Bill Gross smoked again??



Following his now-infamous bet on the Treasury market last year, where he went heavily short, Gross reversed his view in December and loaded up. Now bonds are tanking.

It's a wonder that this guy has any clients left!

8 comments:

Matt Franko said...

He thinks the Fed's 'twist' is bullish...

Resp,

mike norman said...

Wait until he covers and goes short again--which I'm sure he will--and then go long. It should be any day now.

Matt Franko said...

Mike,

Gold looks like it is down another 3% today, looks like a broad liquidation as bonds are down and gold?

As far as bonds, the Fed telegraphed the end of QE2 at the end of June '11 IIRC and that was a good entry point... I'll try to get some data on the Fed's 'twit' er.. 'twist' and find out if they have telegraphed when this 'twist' is going to be over....

Resp,

PS looks like a good policy to not let folks refer to you as "Bond King" or perhaps "King" of anything! ;)

Poor Gross...

Matt Franko said...

'twist' started in October '11 and is due to end in June '12:

http://money.cnn.com/2011/09/21/news/economy/federal_reserve_operation_twist/index.htm

Bonds topped out right around October 1st (using TLT as proxy):

http://finance.yahoo.com/echarts?s=TLT+Interactive#chart1:symbol=tlt;range=6m;indicator=wpr;charttype=ohlc;crosshair=on;ohlcvalues=1;logscale=off;source=undefined


So looks like some overall pressure from 'twist' thru June else equal... then perhaps a pretty good long entry if no QE3 to immediately follow, else equal.

Resp,

mike norman said...

Gold's gonna hurt a lot of people.

Unforgiven said...

Especially after the shills get through distributing it to the suckers.

If they haven't already.

GLH said...

Could you call Bill Gross a reverse indicator?
Also, have you been watching the CNBC gold promoters? They even had gold bars on the air about all day the other day. Can't you always tell a top in something when everybody is pushing it?

Matt Franko said...

I think the gold sellers are the only advertisers Limbaugh has left! ;)