BY MARK SEBASTIAN
May 20, 2025
Hey Traders,
On the open, bonds looked like they were going to fall off a cliff.
As one might expect, the S&P 500 was down over 1%.
Instead of falling off a cliff, bonds exploded higher off, and TLT bounced hard off of 85. That’s indicative of a 5% yield in the 30 year treasure holding and long term rates coming down:
The 10 year closed at a 4.41 yield after briefly being over 4.5, and the 30 year bond closed at 4.91 after touching over 5%.
If this ends up being a double bottom in the bond market, stocks might have more runway.
VIX seems to think so:
May is pricing VIX like it is going to 17 and the curve is in a steep contango … that’s usually pretty bullish.
There is still time to join Rip Zone at the founders price. This week, Andrew is going to be walking through the entire strategy with Rip Zone Traders – so this is the time to join. Plus the trading environment for this strategy is GREAT. Click here to join.
Reviewing Friday’s Trade
No Trade.
…Today’s Outlook
If we open up today, I think we get some follow through. I might set up both a single day and super overnight on Tuesday.
Call Ted if you aren’t currently a member – 888 872 3301.
Your Only Option,
Mark Sebastian
