Page menu

Wednesday, September 30, 2026

Cayman Islands Hedge Funds Are Loading Up On U.S. Treasury Bills

The same trade I alerted to earlier in the week [link] - glad I don't have to live on a desolate Island to trade like a hedge fund manager. I hate the heat. No thanks! 

Why 90k Very Wealthy People Live On Island: Few natural resources. No natural source of fresh water.  Constantly battered by hurricanes. No Costco.  

Cayman Islands Hedge Funds Are Loading Up On U.S. Treasury Bills

This is the standout headline I spotted on the X platform this morning:



but this is nothing new. 

Like it or not, hedge funds are a permanent part of the Treasury market 


THE SCALE of the Treasury market is mind-boggling. Some $1trn in securities change hands each day. Trillions more are used as collateral for short-term loans. Financial institutions of all stripes are involved: banks, central banks, high-speed traders, insurers, endowments, pension funds, hedge funds and so on. (economist.com) 

So then, why are the usual suspects (@ barchart), and even CNBC [link], pumping this angle - this morning - on more than one platform? If you've been following this blog for any length of time, then you already know why... 

Now that the sell treasuries (short) trade has run its course, they've flipped the script. 

barchart US Treasury pump on Instagram 

Reminder: Barchart is the same outfit that was seen driving the recent coordinated route in S. Korean semiconductor stocks, and doing rug pulls on US tech, when S Korean markets were closed (holiday). [Read all about how: Chinese Reddit Traders Teamed Up To Help Create The Perfect Storm]   

To make a long story short: US Treasuries are being traded as part of the rotation we've seen pick up steam in nearly every other sector, and that's what I find truly mind-boggling.  


I've since raised the target on the 3X Treasury Bull $TMF - find the updated chart in the same place [stockcharts public hub] and we're already seeing the sellers covering their short positions.  




Seeing Green Arrows 

 





P.S. Other things we're watching - related: 1. Possible setup for another rout in equites, on the return of the usual energy trade - rotation: 



2. Possible shakeout in shares $MU Micron - ahead of tonight's earnings drop 
  



P.P.S. Reminder: I'll be out for a short stretch (not in the Cayman Islands) but I plan to be back in time for the kick off of Q4 window dressing. Wouldn't miss it for the world!  
Posted by at No comments:

Monday, September 28, 2026

Monday Downside Surprise - Brand New Chart

I added another trade to the public hub on Friday - no paywall - absolutely free: Spoiler: it's the 3X Treasury Bull $TMF -  most contrarian play on Wall Street right now (I know)! Link to the public charts area @ stockcharts.com 

I already alerted to the chart on X on Friday, and if you were paying attention you've already started building a position. We already own Treasuries, in our 401k - not the $TMF. If you're new to leveraged ETF trading - you should read my cautionary disclaimer Word to the Wise: Leveraged ETFs Are Not for the Casual Investor

Heads-up: I'm taking a road trip later in the week - as soon as Micron reports - gas prices just dropped 50 cents over the weekend (my gain): I'll be trading from the road, but I probably won't be updating charts. If the charts I just added to the public hub start blowing up [link], you're on your own. Know how to set a stop loss. 

Quick update on futures - seeing another Monday morning rug pull this morning (the usual pivot - energy up/ tech stocks down) - look here (treasury yields) not there:

Tim Seymour (CNBC Fast Money) semiconductor stocks getting whacked(-3%). Gold (-3%, and gold miners - even worse (-5%) their other favorite sector getting absolutely schlonged.  Yields still blamed... yeah right! 🤣 

 PS. Last week's market update is still doing most the heavy lifting so be sure to skim the previous update (s): Yields Soar, Stocks & Bonds Selloff — So What? So What? So Let’s Trade






Posted by at No comments:
Subscribe to: Posts (Atom)