Monday, 1 September 2014

Holidays Over as Volume Should Return

Last week saw more upside in Equities and Bonds on the back of very low volume. No real sellers anywhere, just short covering and thin markets helping push the markets up.
August was a very difficult month personally, I managed to make some money but am hoping for better volume and more two sided action come September.
Looking forward we have a lot of data this week, as is the case on the first week of the month. This will determine if its low rates for ever of a change in rhetoric.
Thursday is an important ECB meeting with a high probability chance of a potential rate cut and QE. This would be using up all the chips for the ECB in my opinion, which won't change the decline in Europe. If this is the case we are likely to see Euribor Yields go very close to zero if not negative, and the Yield Curve become flat, if not head to inversion. Never thought I would be saying that from such a low base.

30 Yr Strategy update: No filled trades last week


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