No Good, Very Bad Bond Auction

BY MARK SEBASTIAN 

May 22, 2025

Hey Traders,

 

All it took was a really, really bad 20 year bond auction to set the market on fire.

 

Let me know if you can tell when the results of the bond auction hit the tape:

So what’s next? It’s kinda up to the bond market … there’s another bond auction today for 18 billion dollars on 10 year notes.

 

If the auction goes well, bonds might bottom out on Thursday. If not, TLT could fall below 2023 lows of 82 dollars a share:

At the time the S&P 500 was at around 4100 – food for thought on where we could actually go if the wheels fall off the global bond market.

 

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 Yesterday’s Trade

 

The overnight looked really nice until that bond auction. Then the market completely rolled over. If the next auction goes poorly, look for a bear super overnight.

 

…Today’s Outlook

 

Bond auction at 1 ET on 18 billion in 10 year Tips is going to be telling.

 

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

Your Only Option,

Mark Sebastian

Mark Sebastian

Mark Sebastian

Mark Sebastian is a former member of both the Chicago Board Options Exchange (CBOE) and the American Stock Exchange (AMEX), where he spent years mastering the art of options trading in the most competitive environment imaginable. As Chief Investment Officer at the hedge fund Karman Line Capital, Mark manages sophisticated options strategies for institutional clients. He is the author of two highly regarded books on options trading: ‘The Option Traders Hedge Fund’ and ‘Trading Options for Edge.’ Mark is a frequent guest on major financial networks including CNBC, Fox Business News, Bloomberg, and First Business News, where he provides expert commentary on market volatility and options strategies.

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