You wouldn't believe we were trading low 1800s in the ES two weeks ago, but that week aside the market has slotted back into the standard theme of the year which is buy any dip, low volume, not much volatility. Seems like the market has gone very flat while waiting for the big event, Wednesdays FOMC meeting, which is likely to bring about more of the same rhetoric fueling more gains as long period of Easy Policy will remain despite the likely finishing of the QE program.
As far as STIRs go, Short Sterling Spreads are almost back to where they were before the initial fall, so my initial Strategy in buying all the way down worked out well, but now I'm in a spot of bother as I have Shorted a bit too early and quite a bit under water on this, and what makes things worse is since the switch to ICE exchange it seems as though the volume has totally died out, with the recent volume rivaling the super low volume of the Euribor, and this on days where we had BoE minutes and UK GDP. So its a matter of being patient on this trade right now, and hoping for some pullback.
Going forward its more green this morning and it doesn't seem like the bears have anything on the Bulls at the moment, as the 7 to 8% rally since the lows of two weeks has hardly been challenged, and doesn't look like it will be challenged as Nasdaq is within 2% of a Year highs and ES just over 2% from year highs. European Indices remain much more pressured, but will be brought up along with the US markets despite with a bit more volatility I assume.
As far as STIRs go, Short Sterling Spreads are almost back to where they were before the initial fall, so my initial Strategy in buying all the way down worked out well, but now I'm in a spot of bother as I have Shorted a bit too early and quite a bit under water on this, and what makes things worse is since the switch to ICE exchange it seems as though the volume has totally died out, with the recent volume rivaling the super low volume of the Euribor, and this on days where we had BoE minutes and UK GDP. So its a matter of being patient on this trade right now, and hoping for some pullback.
Going forward its more green this morning and it doesn't seem like the bears have anything on the Bulls at the moment, as the 7 to 8% rally since the lows of two weeks has hardly been challenged, and doesn't look like it will be challenged as Nasdaq is within 2% of a Year highs and ES just over 2% from year highs. European Indices remain much more pressured, but will be brought up along with the US markets despite with a bit more volatility I assume.
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