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Tuesday, June 16, 2009
TBT I'm long
Today I took on a new long position in the TBT the ultra 20-year treasuries. My position is 1oo shares at 54.20. This one was a falling knife and I should have waited until it was firmly in the butcher block. My thesis is more forward long term looking believing that interest rates and yields cannot stay this historically low while the government inflates our way to failure and has to exercise financial discipline to rain back in the money supply... I'm betting that the BRIC nations will continue to waive their sabers calling for a more diversified stable world currency volatility and a falling dollar should naturally be the end result. I will probably pick up some long dated calls to add to my position.
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I've got June $50's sold on TBT. I think I entered in January. If it's close to $50 tomorrow I might buy the calls back and sell a higher strike, further month call and just keep the position.
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