You better follow the bond market

Follow the bond market.  The big players are taking action and positioning themselves.  See the direction the big guys are going - and ask yourself why they might be doing this.  I wrote yesterday about Bill Gross.  Jim Rogers seems to be joining him.

But what about Goldman Sachs?  A news report suggests they went LONG U.S. Treasuries; that means they bought them, like them, and are holding onto them.

Really?  Can you trust Goldman Sachs? Are they in bed with the U.S. Government?  Might they be a little too cozy and have other motivations?

Understand you can never duplicate what these "smarter than you, very big, and highly sophisticated bond market players" do.  They know more and have more muscle than you realize.  But watch them; and watch the actual movement in the bond markets and where interest rates are heading.

These are important times.  Pay attention.  Follow the bond markets.

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Here are some articles worth examining online:

Goldman Goes Long US Government Debt

Goldman Sachs dramatically increased its exposure to debt issued by the US government and government-sponsored agencies like Fannie Mae and Freddie Mac in the first quarter of this year, apparently bucking the trend of some of the biggest bond traders to short US Treasuries...

Read more:
http://www.cnbc.com/id/42972870


Jim Rogers says may short U.S. Treasuries, later today

Jim Rogers, the veteran investor and commodity bull, plans to short U.S. Treasuries, maybe today if he "gets around to it" and wants to buy more silver, he told Reuters in an interview.

Rogers, who rose to prominence as co-founder of the former Quantum Fund with billionaire investor George Soros four decades ago, said he expects bond prices to fall and the U.S. dollar to rally when the Federal Reserve halts its government bond buying program at the end of June.

"I'm not short bonds yet but I plan to short bonds -- maybe this afternoon if I get around to it," Rogers told Reuters Insider television on Tuesday....

The long-time commodities investor said he was unruffled by last week's commodities rout that knocked 13 percent off oil prices. Silver also fell 25 percent in its biggest correction since prices collapsed in 1980, hit by a succession of margin increases that nearly doubled trading costs. Silver had risen 27 percent in April.

Now he sees a buying opportunity.

"It's not the end of the silver market," he said. "I want to buy more silver."

The price of increasingly scarce commodities like oil and precious metals will be rising for a number of years, Rogers said, regardless of impressive market corrections.

"We are in a bull market that has several years to go. I don't know when it is going to end," Rogers said. "We have virtually no new supply of anything. The world's known reserves of oil continue to decline."

He described the commodity crash as "nothing unusual".

"Corrections happen all the time in markets," he said...

Read more:
http://www.realclearmarkets.com/news/reuters/finance_business/2011/May/10/jim_rogers_says_may_short_u_s__treasuries__later_today.html