Wednesday, January 11, 2017

TRUMPFLATION SQUEEZE aka. Terminal Idiocracy

Wall Street didn't hear what they wanted from today's Trump press conference. Between now and next Friday will be the mother of all bond market short squeezes...

“There was so much demand, either from overseas who are attracted by the weaker dollar today, or short-covering from domestic accounts”

“The market didn’t get what it wanted –- details on stimulus to be provided” 

Treasury yields (black) versus speculative Treasury short positions aka. bets on reflation:

"There is some near-term exposure given the breadth of the Trump trade."


Small cap long futures positions

Bonds versus stocks