How to Repay $33 Trillion? Bonds Signaling a Problem

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There is always some type of rotation and yesterday's game was buying the Russell and selling the Nasdaq. I told the MTS chat room that I like these types of markets. These are some of the best environments if you like trading the gaps and trading the rip and the dips.

I want to be honest — I'm not sure if the ES is going up or down. What I can say is, I think we see a pop higher then I start looking at the TLT/bonds and to tell the truth it scares the shit out of me.

I don't watch much TV, but the PitBull said Rick Santelli was on CNBC yesterday and he said rates are going to 13%. How is the US government going to pay back $33 trillion? They can't and the higher rates go, the more turbulence it will create. It's going to set off a domino effect of the likes we have never seen. To me, it's not “if,” it's “when.”

Going into today, the Dow (YM) is down 9 of the last 12 sessions, while two of the three so-called “up days” were gains of 0.02% and 0.12%, respectively. In that stretch alone, we’ve seen a peak-to-trough decline of almost 2,000 points.