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BofA Stopped Out Of Bullish 10 Year Treasury Trade: Time To Go Long Again

Tyler Durden's picture




 

Last Thursday, as bond yields were cratering and the price on the TYZ4 soaring soaring, we made an explicit cautious observation in "A Bearish Sign For Treasurys?" that the latest incarnation of the immortal muppet-slayer, Tom Stolper, manifesting himself this time as Bank of America's technician MacNeill Curry, decided to go from bearish on the 10 Year as he has been on and off since the start of the year, to bullish.

Specifically, we said that "with the 10Y yield  plunging, BofA's chief technician, which as is widely known is another words for "momentum chaser" who has over the past year been branded as the new coming of the legendary Tom Stolper thanks to the inverse-accuracy of his calls, has changed his tune, to wit: "the trend in yield is lower." If there was something that could make us nervous about being long TSYs, this is it."

And almost as if on demand, the 10 Year proceeded to tumble like a downhill rolling bag of bricks in the hours, not days, following this all too obvious top-tick.

 

But even more amusing, moments ago the same MacNeill Curry has flip flopped yet again and in a note, has just announced that BofA has been stopped out of its "long"

Stopped out of TYZ4 short as US 10yr yields break n/term support. However, more needs to be seen before turning bearish

 

US 10yr Treasury yields rose sharply overnight, breaking key support at 2.448%/124.30+ (Aug-21 bearish extremes) and stopping us out of our long in the process. However, it is too early to say that the medium term downtrend (begun at the Jan-02 high at 3.049%) has run its course. For this to be the case, bears need to see a sustained break of the pivotal 2.5m trendline at 2.476%. Until then the medium term downtrend remains intact

Translation: the coast is again clear to get back long the 10 Year. More importantly, once BofA turns "bearish' on TYZ4, that will be the time to double down, go all-in and even take a few margin loans out in the process.

 

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Wed, 09/03/2014 - 13:41 | 5176313 forwardho
forwardho's picture

When its not "your" $$, you can have all manner of shits and giggles at others expence.

Wed, 09/03/2014 - 13:45 | 5176346 Bam_Man
Bam_Man's picture

Any and all sell-side "investment advice" needs to include the following disclaimer:

"For amusement purposes only. Acting on this information with real money will be hazardous to your financial health."

Wed, 09/03/2014 - 13:48 | 5176355 JustObserving
JustObserving's picture

Yellen to BofA "Here is another $10 billion.  Keep the illusion of a market alive."

Wed, 09/03/2014 - 13:59 | 5176424 drinkin koolaid
drinkin koolaid's picture

One word  -- commissions.

Wed, 09/03/2014 - 14:00 | 5176432 himaroid
himaroid's picture

Careful this week. ECB tomorrow. Jobs Friday. Trend is down in yields.

Wed, 09/03/2014 - 14:41 | 5176624 saints51
saints51's picture

Agreed. Lots of news tomorrow with a load of FOMC members speaking.

Wed, 09/03/2014 - 15:04 | 5176720 Pool Shark
Pool Shark's picture

 

 

You can laugh all you want at the new 50-year Spanish bonds. With the trend in yields down, that 4% yield will look pretty tasty a year or so from now.

[Disclosure: Long (and have been long) Cash, Bonds, and Gold...]

 

Wed, 09/03/2014 - 14:36 | 5176603 FieldingMellish
FieldingMellish's picture

He should start a newsletter with Gartman.

Wed, 09/03/2014 - 16:02 | 5176969 Yen Cross
Yen Cross's picture

  The "Mc Garter" newsletter.

  Get analized by Mc Neil, Gartman, and Cramer all in one action packed publication...

Wed, 09/03/2014 - 14:56 | 5176693 Dazman
Dazman's picture

This looks exactly like how my trades are. Get in, does a complete 180, goes down to stop my out, then does another 180 and takes off. LOL. Glad to see even the big boys have this happen to them

Wed, 09/03/2014 - 15:54 | 5176934 Yen Cross
Yen Cross's picture

    He's going to get assraped again... 10's are flat and look like they want to move back down in yield.

Wed, 09/03/2014 - 16:15 | 5177038 Ewtman
Ewtman's picture

10 YR yields are headed up... so prices are headed down. Not rocket science.

 

http://www.globaldeflationnews.com/10-yr-treasury-index-yieldelliott-wav...

 

 

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