Chicago trader: Play it again Sam trade

CBOE Chicago Board Options Exchange
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Volatility persists in the Treasury markets as we have seen the 10-year note's yield pop like a cork out of a bottle from a recent low of 1.64 percent to more than 2 percent prior to Thursday's weaker-than-expected retail sales data.

This move higher in yields translated into a precipitous drop in the iShares Barclays 20+ Year Treasury Bond ETF, which is the fund that many investors like to use to gain long exposure to the price of longer-dated Treasurys (as price and yield are inversely related). Ticker TLT traded at $138 on Jan 30, it printed mid-$129s Thursday morning. That is more characteristic of a small-cap stock than the U.S. Treasury Market.

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Contradiction and volatility in markets present opportunity in my mind. Although we are seeing the S&P 500 a few clicks away from another historic high, I trust the narrative the bond market has been telling over the long term.