Well, that was a great 2 weeks on the road in the US. Now back to work. I won’t pretend I know what’s new and exciting in the markets…I looked at my screens for the first time just a few minutes ago. Instead, here are a few points from my road trip across the western US:
- I rented a 2014 Ford Escape SE for the 3,000 mile trip. I can recommend: it handled the road and mountains just great, with 26 MPG overall. Not too bad for a 4×4.
- Living in the big city makes the rural situation easy to forget. For example, we encountered a ton of friendly folks on the trip, and saw a good amount of rural poverty. It’s easy to take public transit and free healthcare for granted; I can better understand both the trend for rural poor to go to cities and the desires of rural middle-class for limited government. It’s hard to see the impact of government policy in these areas (National Parks aside).
- Plenty of shiny new RVs on the trip. I wonder if these are new purchases by baby boomers, or people trading up.
- Glacier National Park is highly underrated. Truly beautiful, and surrounded by awesome towns in northwest Montana.
This week is rolling time for my options positions. It seems several of my short strikes have pin risk – a great problem to have, as that means maximum profitability. I’m too chicken to hold out for expiration, though; I’ll either close or extend duration. First impressions on the markets, now that I’ve stared at my charts a few minutes:
- Bond sell-off…wow. I had heard plenty talk of staying away from long duration bonds…is this the beginning or the end of the selloff. Fed comments Wednesday will likely be more impactful than usual.
- Grains sell-off…wow. Still tanking. Weather was fantastic on our trip, so I guess the harvest will be amazing. Where is the bottom?
- The Apple announcement. I haven’t looked into the details of what was announced yet, but I see the price action was very much in line with previous announcements – buy rumour, sell news (or better – just before news), then buy back after news.