Thursday, January 14, 2010

TLT and the Mamis bottom

Long bonds had an excellent auction today showing that the smart guys are pricing in a bit more deflation as the speculators are still chasing new stock highs. Bottoms form like this.

Jobs worse than expected, December retail sales worse than expected, gas prices tick higher, inventories tick higher, China a seething pit of corruption. Do the math.

Reminder: this is the classic Mamis bottom:

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