Look at the pop in TLT on Monday – .massive move higher off the lows.

When bonds started rallying it started to lift the stock market. Then number 2 clicked:

2. Traders are more afraid of upside than downside….

No one wants to miss the chance to get in … so at the first hint of a turnaround, the algos turn on.

We will be in this mess until tomorrow at least, maybe Friday after non-farm payrolls.

This is going to be the best time to enter income trades. You start jumping in Thursday and Friday – you will most likely be extremely happy. Join Hans here.

Let’s Recap Yesterday’s Trade

We are long a bear XSP spread that expires on April 2nd. It was up big Monday morning and could have been a close. I think we will get another look at closing today.

But no new trade Monday … let’s wipe the slate clean and have a great April 1st.

…Today’s Outlook

I think we could see a repeat of Monday. OR we could see a repeat in reverse of Monday’s action – open higher and then tank. My guess is regardless we close the day lower and potentially with the VIX breaking 25.

Call Ted if you aren’t currently a member – 888 872 3301.