It's a good week for  both equity and bonds, and I close all of my position with big gain.  Now I am neutral and still lean towards bullish on equity. It may pullback a little bit at this point, but I will not be bearish until S&P reach 2140-2150.  Russell 2000 underperformed big cap last week. It may catch up this week.

I am neutral with bonds by now. So I will watch for the interest rate before making any meaningful trade.

This week, I don't have any big view.   I will do some small and quick trades for some quick profit. It's time to take some break, review more ideas and do more analysis.

Last Friday, equity market sold off sharply. I think this is still a buying opportunity, but my view for the whole market is slightly changed.  I think the uptrend is intact, but it will be a bumpy ride.  For next few weeks or possibly one or two months, S&P 500 will still be up, possibly go to 2150. But it will have 5% to 7% correction if it gets there before resuming the next powerful upside. So in short time until middle to later May, I still lean towards buying dip. I will be more cautious after that especially when S&P 500 get to 2150.

For interest rate, I still think rates will be up in long term, but it seems that it will take much longer to go up than I originally thought. So for now I will take profits quickly once I have some  meaningful gain on bonds, and then look for next ideas.

So my current strategy will be take quick profits on both bonds and equity, and don't try to hold long term positions.

Check Market Overview page for more details about my recent long term view of the market.

Equity's uptrend is still intact even with today's small pullback. Actually this pullback is another good buying opportunity. S&P500 will break out to the upside very quickly from here.  So at this time the winning strategy is still buying dip.

Bond price has been flat last two day with very small range in interest rate.  I still have the same view that rate will go up very quickly. 10 year rates will go to 2% at least this week, and 30 year rates will go to 2.7% in short term.

Equity's upside from last week has been slow and steady, so it will last longer.



Just for Fun
Don't you think Hillary Clinton is very similar to China's first and only woman emperor WuZeTian 武则天? Both of their husbands are emperor or president,  both are going to be in power in their later 60's, and both are very ambitious and powerful. I think she will win.

I still have the same view as last week with buying equity and selling bonds. With last Friday's weak job report, the equity futures was sharply down in Friday's morning and Monday morning, but it's recovering from the earlier losses, which is much more bullish.

Bond futures were up sharply on Friday morning after the bad employment reports, but 30 years bond is way off the Friday's high now.  This indicates that rates will go up no matter what. So all these make today's price even more attractive compared to last week. Now it's best time to short bonds, so buy TLT May put option will be the best trades now.

As I have stated last week, it's ok to chase the equity now since it's the beginning of the uptrend in the next few months. You will never see this price anymore next three months, and possibly rest of the year. So buy equity index call options like spy, qqq May calls. Bur yelp, FB calls.
It's the same that it's the best time to short bonds now, and rates will go up very quickly in next few weeks. You will never have the opportunity to short bonds again if you stay in the sideline.

Don't stay on the side just because equity is already up more than your entry points,  now is the best opportunity to chase both equity on the upside and bonds on the downside. If you wait, you will have to buy at much higher price later. So ACT NOW, and this is the time to go double, triple you money in a few weeks!!!!!