Bonds To Outperform Stocks


Jerry Welch, Commodity Insite!
Call me at 406 -682 -5010
Ennis, Montana 59729

Follow me on twitter@commodityinsite

The big news this week was when it was announced that economic growth in China fell to a new, 38 year low. Initially, the news was shrugged off. Today, however, there is more and more chatter about stagnant global economic growth. And because of the news regarding China I sent the following Special Email Alert to my brokerage clients, subscribers to my twice a day newsletter Commodity Insite and to those that recently purchased my book, Haunted By Markets. Here was my suggestion.

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special email alert!


As a new trade; buy (1) September Treasury bond and sell (1) September Dow Jones E-mini futures at the market. The last trade for bonds is 153.24 up 1 tick and the last for the E-mini Sept. Dow is 27,342 up 32 points. Use a dollar stop of $750 per spread.

The news that the Chinese economy is enduring the slowest growth in history is bearish stocks but bullish bonds. We shall see!


the time 8:34 a.m. Chicago

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I have not made a trading suggestion with stocks or bonds since May 1. The suggestion above was made a few days ago. Since 2000, an old saw is, As China goes, so go commodities. With the Chinese economy struggling and signs of weak growth elsewhere across the globe it may be time for bonds to outperform stocks.


And as I type furiously away, Dow Jones futures are down 60 points but bond futures up 24 points. Avoid the long side of stocks and be careful being short bonds!


The time now is 10:18 a.m. Chicago time





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The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Midwest Market Solutions believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice.There is no guarantee that the advice we give will result in profitable trades.









This material has been prepared by a sales or trading employee or agent of Midwest Market Solutions and is, or is in the nature of, a solicitation. This material is not a research report prepared by Midwest Market Solutions Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.


DISTRIBUTION IN SOME JURISDICTIONS MAY BE PROHIBITED OR RESTRICTED BY LAW. PERSONS IN POSSESSION OF THIS COMMUNICATION INDIRECTLY SHOULD INFORM THEMSELVES ABOUT AND OBSERVE ANY SUCH PROHIBITION OR RESTRICTIONS. TO THE EXTENT THAT YOU HAVE RECEIVED THIS COMMUNICATION INDIRECTLY AND SOLICITATIONS ARE PROHIBITED IN YOUR JURISDICTION WITHOUT REGISTRATION, THE MARKET COMMENTARY IN THIS COMMUNICATION SHOULD NOT BE CONSIDERED A SOLICITATION.


The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Midwest Market Solutions believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice.There is no guarantee that the advice we give will result in profitable trades.