DGS2 trade ideas
$spy $tlt $tnx Ted Spread analysisI would buy 2 yr treasury notes. If yields rise past 5% then stocks are screwed.
Extreme OB levelIs this a problem for spreads? Extreme OB reading on Monthly chart and at LT downtrend line. Is the LT trend over now? If so, may be a problem for market
The More Threatening, Under-priced Risks to Global MktsThe Fed's rate hike has been pegged as one of the greatest risks to the future of the financial system - not that it is immediately a threat, but the uncertainty is brings is troubling. However, we have seen the market move to price the possibility of a December hike into the markets (here 2-year yields). In the meantime, the China economic-financial strain has seemingly dropped off the radars and Emerging Market capital reversal seems a fear of the past. These are currently the greater unknowns according to pricing.
