We got long US equities last week while the bond market was doing its best to make that feel uncomfortable. That call has worked (seen below in the trade thesis write-up). We’re now in profit, with room to tighten the stop, protect our entry capital and stay involved for a possible push towards 8,000.
That’s a much better position than chasing the move now. The rally has given us the opportunity to take the original planned risk off the table while leaving the upside open.
But this isn’t a victory lap. The interesting question is whether the rally is about to change character. Because the weakness hiding underneath the index might also be where its next leg comes from.
Below the paywall I explore what the rates market is actually telling me, the rotation I’m watching, and how I’m managing the long.
