ProShare Ultra Short 20+ yr Treasury ETF (TBT-N)

Inverse Bond ETF’s? The graph shows a higher low each time. With the expectation of rates going up, he expects it to move up. He would look at this on a month-to-month basis. Q2 is where he would be looking at acquiring bonds, if there are some hiccups and a deflation theme is starting again.

Shorting Bonds? He suggests an inverse ETF. It is probably a good trade, but not a huge trade. Unless you time it right it is tough.

(A Top Pick July 20/13. Down 16.67%.) Took some money out of this, but continues to trade it, as opposed to investing. At some point he expects interest rates are going to go up, and rather quickly.

This ETF basically moves inversely to 20 year+ US bonds. This is double leveraged so it is one that you use as a trading vehicle. Amazed that they have not been able to lower interest rates lower than they have.

This is the ultra-short long treasuries, which is basically a levered product. With this one you are betting against the Fed which recently announced they are going to be buying 10-30 year bonds until the economy improves. You will have a buyer against you for a long time, however if the economy succeeds, the yield should increase. You have the time against you so you have to be careful. Wait until you see growth rates really pick up in manufacturing, consumers and housing.

With this one, you are making a bet that US long bonds are going to decline. If you think interest rates are going up and bond prices are going to come down, this is a way to play it on a short-term basis and get 2 to 1 leverage. Every time you deal with a leveraged ETF, recognize that what they are doing is rolling over a series of futures contracts and there is a cost to doing that. That cost is implicit in the value of the product.

This is a bet against US bonds. He would think that in 3 to 6 months you will see it higher. Thinks the big drop in yield is over and this is a way to play it. This is high risk.

(A Top Pick April 12/11. Up 2.8%.) Sold April Calls.