Author Archives: Jason Kelly

Marie sent: “You wrote in late December that you were looking to short Treasuries. Are you still?” Yes. Treasury yields firmed last week, which means prices dropped, which means short positions rose. Short positions gained a lot in the two weeks ended last Friday. Last week alone saw around $135 billion in debt sold, a […]

As expected and hoped for here in yesterday morning’s post, the financial sector did indeed continue its run higher yesterday. Our own position in it had an outstanding day. That’s all well and good, but some prudent risk management looks to be in order, and is the reason we placed a safety stop under the […]

Regarding our trading position in the financial sector, I wrote to subscribers last Sunday: “We need just the faintest glimmer of hope to see our investment move higher.” With the new administration marching double time on the economic front, the odds of getting such a glimmer seemed good, and indeed worth a trade. We got […]

Several people have written to ask about the possible nationalization of banks, what it would mean to investors, and whether I’m out of the sector because of the risk. Nationalization means different things to different people. If we’re talking about the government taking over the entire financial sector for the country, processing loan applications, sending […]

By now, you’ve certainly seen that the KBW Bank Index fell 20% yesterday. That’s a crash in one day. If you like a market that takes care of business in a hurry, this one’s for you. Amid the calls that such a dump on Inauguration Day means that fledgling President Obama is not up to […]