So Friday was the perfect storm, a sub par NFP, then the predictable rally, (since they rally on everything these days), then the realisation that this Stock market has run up way too much, and the aggressive sell off, which has continued into today. The Nasdaq has given up 146 dollars in the past 2 sessions, which is some very aggressive selling, especially in some of these momentum stocks that have run up like crazy with some crazy valuations with Netflix, Amazon, Facebook being notable losers.
Bonds pushed up on the back of the idea of a longer period of easy policy as well as a potential QE from the ECB. Euribor Spreads came off aggressively back to the lower end of the range, which gave the opportunity to buy it all the way down. This morning gave further opportunities to load up some more, and I managed to go long 4s in Jun15Sep15 and long 6.5s in Dec15Mar16 and as has been the case over the past few times its been down to these level it had a small bounce for half tick, before making its way back down again. I will look to reload again tomorrow morning, if the spreads are still trading down there.
The best thing right now is to take small profits as any pop up is being met by selling so until the bias of the ECB changes, scalping is the best play.
Going forward the week is pretty light in terms of data, with the main event being the BoE rte decision on thursday, so until then its a matter of nicking ticks.
Bonds pushed up on the back of the idea of a longer period of easy policy as well as a potential QE from the ECB. Euribor Spreads came off aggressively back to the lower end of the range, which gave the opportunity to buy it all the way down. This morning gave further opportunities to load up some more, and I managed to go long 4s in Jun15Sep15 and long 6.5s in Dec15Mar16 and as has been the case over the past few times its been down to these level it had a small bounce for half tick, before making its way back down again. I will look to reload again tomorrow morning, if the spreads are still trading down there.
The best thing right now is to take small profits as any pop up is being met by selling so until the bias of the ECB changes, scalping is the best play.
Going forward the week is pretty light in terms of data, with the main event being the BoE rte decision on thursday, so until then its a matter of nicking ticks.
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