As the bank plan got announced stocks rallied BIG time as investors are jumping on the ship snapping up financials. Big names like Citi and Bank of America where up 20% or more, in fact pretty much everything was up, great day to be long.
The bund headed lower as it couldn't cleanly breach 124.50 and now is trading 124.07. The shoulder has been set in place for the formation and we could see 123 as our next stop.
Euribors were extremely quiet today volume wise. Low interest from the start made trading difficult today with the lack of liquidity making it hard to get filled. I tended to short recent highs in the spreads which barely held, but wasn't able to get much size on. A day to mark of the cards really. We might see some follow through on bonds tomorrow after this massive stock rally. I personally hope we really do as the spreads are becoming very difficult to trade.
Personally long term, I feel that we might still test the lows again in stocks, maybe be not soon, but come the end of the year. All this trillions in spending has got to catch up with us at some point.
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Hello mate, so the big man speaks, I believe this is a short rally, and it will be surprising if it sustains itself. I also had a nightmare getting filled on the Eurodollar, hopefully this will free things up a little and help the spreads to behave a bit better.
ReplyDeleteHappy trading