Been a couple of weeks since my last update. Mainly because there hasn't been anything out the ordinary trading wise. Its pretty much been lower volume and volatility as far as fixed income is concerned with spreads drifting lower.
We had the ECB and Non farm last week, with Draghi being less dovish then was expected, which gave a boost to the euro. Non farm came out much stronger as well, with well over 200k jobs created in the US in the previous month with unemployment rate ticking down to 7.7% This has helped to underpin the rapid rise in the stock markets as we are hitting record high after record high in this DOW.
Personally i think we are due a big correction, but it seems that any sign of weakness is the sign for stocks to be snapped up for those waiting for pullbacks.
As far as spread trading is concerned, I have been long pretty much for the past week, trying to nick half a tick here and there. Ive been trading mainly around Jun14 to Jun15. Especially Mar15Jun15 spread which traded as low as 7s, and is now back up to 8s. Im now looking to short this at 8.5s if it gets up there. I'm also looking to short 7.5s in Dec14Mar15.
Hopefully we will get some better volatility out of these markets in the coming week considering its quarter end, and roll over for all contracts pretty much.
Looking ahead this week, the main data we have is US retail sales on Wednesday, and CPI figures on Friday as well as triple witching on Friday with expiries in March Stock Index Futures and Options, which could lead to some wild movements.
We had the ECB and Non farm last week, with Draghi being less dovish then was expected, which gave a boost to the euro. Non farm came out much stronger as well, with well over 200k jobs created in the US in the previous month with unemployment rate ticking down to 7.7% This has helped to underpin the rapid rise in the stock markets as we are hitting record high after record high in this DOW.
Personally i think we are due a big correction, but it seems that any sign of weakness is the sign for stocks to be snapped up for those waiting for pullbacks.
As far as spread trading is concerned, I have been long pretty much for the past week, trying to nick half a tick here and there. Ive been trading mainly around Jun14 to Jun15. Especially Mar15Jun15 spread which traded as low as 7s, and is now back up to 8s. Im now looking to short this at 8.5s if it gets up there. I'm also looking to short 7.5s in Dec14Mar15.
Hopefully we will get some better volatility out of these markets in the coming week considering its quarter end, and roll over for all contracts pretty much.
Looking ahead this week, the main data we have is US retail sales on Wednesday, and CPI figures on Friday as well as triple witching on Friday with expiries in March Stock Index Futures and Options, which could lead to some wild movements.
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