After some struggle with an oversold stochastic, Bonds are now triggering long. This trade can done by being long bond futures or long one of the bond etfs such as the TLT (TLT).
I like bonds for two reasons. First and foremost, the technical setup presents a nice risk reward ratio. Second, bonds have typically spiked in times of volatility. While the market has sold off meaningfully, volatility has barely budged. Before this leg down is over, I think we will see a spike in the $VIX ($VIX). Because of the complexities that threaten the stability of our financial system, I feel that it is possible that we will see a spike in the $VIX unlike anything we've seen in many many years.
Joel Stahl
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