Key Signal The Fed is Reducing Helicopter Money (Buying of Bonds / Stocks)



BotTrigger Market Update:

Regarding the possibility of a fall correction, we’re getting further evidence that suggests the $QQQ & $SPY will correct soon. Take a look at what’s happening in the bonds market $TLT here on this 3-day bar chart:


As investors digest Federal Reserve quantitative tightening, we are seeing initial confirmation in the bond market. Common sense suggests that demand for bonds will drop & yields will rise as the largest buyer of bonds reduces it balance sheet. That’s exactly what is already happening. Even sooner than we expected. The 10y Treasury yield rallied to 2.35%, a 3-month high that is above its 200-day moving average of 2.32%. This is a key indicator to watch. A selloff in bonds is likely to front run a selloff in stocks; the selloff in bonds is a sure signal that the Fed is truly stepping away from public markets. TLT has dropped from $127 to $124.50 this week. . Tomorrow we will very likely be purchasing a 5% allocation of TLT March 2018 $130 puts. We may sell one of our other longs in the process as well. $MGTI is doing great as it closed today at $2.82. We want to see it close the week above $2.70 minimum. $MGTI & $BTC Bitcoin should do very well as a safe haven rotation if stocks and bonds drop.

We’ve been saying this for a while now, everyone should be opening your own www.coinbase.com account (based in San Francisco) and go buy your own Bitcoin. You can buy divisible amounts btw, so keep in mind you can buy as little as $1 usd worth of Bitcoin or 1 whole Bitcoin.


Some of the greatest pearls shared by Jesse Livermore:

“Money is made by sitting, not trading.”

“The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street even among the professionals, who feel that they must take home some money everyday, as though they were working for regular wages.”

“Buy right, sit tight.”

“Nobody can catch all the fluctuations.”

“There is a time for all things, but I didn’t know it. And that is precisely what beats so many men in Wall Street who are very far from being in the main sucker class. There is the plain fool, who does the wrong thing at all times everywhere, but there is the Wall Street fool, who thinks he must trade all the time. Not many can always have adequate reasons for buying and selling stocks daily – or sufficient knowledge to make his play an intelligent play.”

“It takes time to make money.”

“Don’t give me timing, give me time.”