Euribor spreads held well today, staying nicely in a range for most of the day. I still kept my bias to the short side, shorting along the curve as we remained at short term highs along the red and green month spreads. Going forward I wouldn't expect any big moves in the spreads until we come closer to the ECB rate decision next Thursday and the American job numbers, which will be the latest indication on where we stand.
Stocks had a wild day today, the Dow opened up higher before turning south throughout the day, before shooting up over 200 points towards the close. Such volatility normally is a bearish sign. Financials were the main push towards the close of the session with some wild swings in the big names towards the close. The XLF(financial index) rose almsot 10% in the last hour of trading. This type of action isn't to surprising at this moment as we have those taking profits from the huge run up, and those wanting to initiate positions feeling it is a good pullback to get in. Only time will tell, I still favour downside. Below is a chart of the XLF showing the big intraday reversal from lows.
Hello boss,
ReplyDeletehow long do you think this rally will sustain itself before it loses momentum. I personally think there may be a turn when we have the specific details disclosed for the package Obama confirmed on Monday. I see oil has broken 50's and sustained itself, could this be things flattening out? Who knows. On the euribor front overall i thought they behaved well, however mar jun 10 was a nightmare, very hard to read.
Happy trading mate.