So after pretty much treading sideways for the past week, there is much speculation that there will be a negative deposit rate announced by the ECB on Thursday. On top of that there is talk of a 4 year LTRO, so with all of this and the Bund trading between 146-147, alot of this seems to be priced in so anything short of this could be a great opportunity to get long the Spreads as the knee jerk reaction should be a steepening of the curve. I would be looking at playing it through Euribors and playing the 6 month spreads onwards to really try capture some yield movement.
There has not been much to write about over the past week as volumes have been very low amid this low volatility environment.
Equities have grinded up higher day after day, with any kind of small pullback met buy a barrage of buyers desperate to get in. Shorters are shying away because they have been hit pretty much every time it seems there mite be some momentum to the downside. For a day trader these markets are very tough, cause we live of volatility and without it I've inadvertently turned into a position trader, with alot of my trades taking days if not weeks to get out of! And while interest rates remain low and yield chasing continues, amid the record levels of cash amongst wealthy investors, I can only see this market continue to grind up with any sell of not lasting long. In my opinion the market isn't being priced based on the economy, its just merely supply and demand. With little yield available else where Stocks and property will be the way to go.
There has not been much to write about over the past week as volumes have been very low amid this low volatility environment.
Equities have grinded up higher day after day, with any kind of small pullback met buy a barrage of buyers desperate to get in. Shorters are shying away because they have been hit pretty much every time it seems there mite be some momentum to the downside. For a day trader these markets are very tough, cause we live of volatility and without it I've inadvertently turned into a position trader, with alot of my trades taking days if not weeks to get out of! And while interest rates remain low and yield chasing continues, amid the record levels of cash amongst wealthy investors, I can only see this market continue to grind up with any sell of not lasting long. In my opinion the market isn't being priced based on the economy, its just merely supply and demand. With little yield available else where Stocks and property will be the way to go.
Hi, considering how the spreads fell in afterhours yesterday, do you think short is the way to go, as far as sep14 to jun15 spreads are concerned? Dec14-Dec15 traded over 20K lots at 8.0 :o
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