Thursday, 8 May 2014

Sideway choppy and difficult!

The last week has been some difficult conditions to trade, Volumes have been low in Bonds in general, Bonds and Stocks keep wanting to go up, hard to get any traction anywhere. Scalping equities seem to be the best play right now, keep buying on any dip and your golden, its worked for a year plus, but its the feeling when it comes off that this is the one where we pull back more then 2% that is a constant snag, but time and again I'm proven wrong. Right now I'm short the Dow and twice was 140 points onside before twice seeing that disappear within a day. In hindsite I should have taken the profit, but its that feeling that this will be the one, this rally can't last forever, but low and behold its the same thing all the time. Its likely now the bulls will just push this higher and i'll be stopped but I'm willing to take the loss given that one day I can really nail the short.
On the Euribor front, we have bounced off lows where we got as low as 2.5/3s in Jun15Sep15 which bounced as expected to 3.5s but since that move up we have had low volume sideways churning, and all eyes are on this afternoons BoE and ECB rate decisions. Although it's unlikely anything will happen with rates hopefully the associated commentary will lead to some opportunities. Banking on some movement here.
Going forward, there's not much else out for the rest of the week so its a matter of scalping what you can, and keep ticking over till some real opportunity comes.

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