As Equities remain elevated, Bonds have taken the cue to sell off, as expectations of rate movements from the FED and BoE weigh.
Euro Bonds upside has been capped as it seems as though the ECB has used most of its bullets, with rate cuts and the announcement of QE in last Thursdays rate meeting.
I have generally tried to go long as much as I can in the Euribor Spreads as the floor for now has been set, and I went long into the initial fall in Spreads during the press conference to then realize profit as the floor seemed to be reached and the curve started to steepen slightly.
The following day we had weaker NFP as well, with the instant reaction in Equities going up, and Bonds going up also. This reaction proves the fact that the market doesn't care about fundamentals, its trading on the basis of cheaper money for longer, and this is the main driving force behind the one way move that we observe day after day.
Despite this worse number, the dollar has reached multi month highs, as expectations for FED tightening takes hold.
The market has been tough to trade as the trends have been strong, and despite, oversold conditions in some USD fx pairs, there doesn't seem to be any stabilization as of now.However I'm using options to play direction so as to not be whipsawed out but the frequent spikes that have been occurring.
Currently I'm long Corn, with a put bought as protection, and I'm short ES via a Call Spread financed by a out of the money put. A slight correction would be nice!
Looking forward we have US Retail Sales due, which could provide a bit of volatility,
30 Yr Strategy Update
Its been a quiet period since the end of August with two trades being triggered, one for a loss and one for a profit. Overall profit has been 2 ticks.
Euro Bonds upside has been capped as it seems as though the ECB has used most of its bullets, with rate cuts and the announcement of QE in last Thursdays rate meeting.
I have generally tried to go long as much as I can in the Euribor Spreads as the floor for now has been set, and I went long into the initial fall in Spreads during the press conference to then realize profit as the floor seemed to be reached and the curve started to steepen slightly.
The following day we had weaker NFP as well, with the instant reaction in Equities going up, and Bonds going up also. This reaction proves the fact that the market doesn't care about fundamentals, its trading on the basis of cheaper money for longer, and this is the main driving force behind the one way move that we observe day after day.
Despite this worse number, the dollar has reached multi month highs, as expectations for FED tightening takes hold.
The market has been tough to trade as the trends have been strong, and despite, oversold conditions in some USD fx pairs, there doesn't seem to be any stabilization as of now.However I'm using options to play direction so as to not be whipsawed out but the frequent spikes that have been occurring.
Currently I'm long Corn, with a put bought as protection, and I'm short ES via a Call Spread financed by a out of the money put. A slight correction would be nice!
Looking forward we have US Retail Sales due, which could provide a bit of volatility,
30 Yr Strategy Update
Its been a quiet period since the end of August with two trades being triggered, one for a loss and one for a profit. Overall profit has been 2 ticks.
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