From Zacks: The technology sector crash and faster prospects of rising rates at the Federal Reserve were among the major market movers in the last one month.
The bearish sentiment in the options market surrounding the ProShares UltraShort 20 Plus Year Treasury ETF (NYSE:TBT) has been overdone, and the leveraged bond fund is due for a snap-back rally.
Since last week’s FOMC decision to raise target interest rates again, we have seen bond prices rally (yields fall), pulling bond ETFs such as TLT (iShares 20+ Year Treasury Bond, Expense Ratio 0.15%) with them.
To say that Treasury Bonds, especially longer durations, took a beating following Trump’s election to the Presidency last November is probably an understatement.
U.S. Treasuries are taking a cliff-dive today as rates are skyrocketing post Presidential election results.
With bonds on the move last Friday during a tumultuous day of Fed commentary about the possible future path of interest rates, we saw some options activity in a levered inverse Bond fund that is worth pointing out.
INDEXDJX:.DJI, INDEXSP:.INX, NYSEARCA:SPY
David Fabian: Hedging your portfolio is a strategy that is often employed by those who want to take out some downside protection against the possibility of a market drop. The most successful application of this process is to reduce your exposure in highly