RE:RE:RE:RE:RE:RE:RE:Level 2I first noticed rumbling last tuesday night. Literally spent the entire week digging trying to figure how bonds could swing so hard yet the news was next to non-existent.
It was driving me crazy that so much money was being sold in bonds yet there were no signs of where it was going. The First spot to check was USD but besides being barely flat it was declining.
Found an article Saturday morning triggered a thought to my question of why I couldn't find the money, could it be central banks buying? Turns out last Tuesday the BOB bought 500M of Provincial bonds, maybe that its.
Looks like a complete fleecing of bonds, done at night in thinly traded volume. Where are the banks? sleeping yet come morning after the fleecing in they come and buy up the prices. That can't be right, must be thinking too much.
Anyways, let's say it was enough to get me out and buying puts on almost everything I could get!
PUTS
Japan
S&P 500
Dow
Russell 2000
US Retailers
US Homebuilders. (I listened to the last conference call for the largest builder in the US called Lennar 2 weeks ago when I was up at the cottage, they were laughing saying it's never been easier to sell a house ever. That was enough for me :)
Best part, over the last few weeks no one even considered markets can move down and these puts were being given away. This week, it looks like I have to pony up a little.
If you want to see what insanity looks like go ahead
World Government Bonds - Investing.com Canada