Big miss on German PMI

A big miss on German PMI today with the Flash Manufacturing coming in at 50 (exp 51.5) and Services coming in at 52.1 (exp 54.5). Since Germany is carrying Europe pretty much this number will come as some concern to Euro Leaders and the ECB increasing the likelihood of all out QE in the Eurozone, and that lovely word QE is just what the stock market loves, and most likely will propel Dax and Cac to further higher moves.
This is the environment that the central bankers have created, but when things turn it will turn hard!
In terms of reaction today, we had the expected push up in the Bund, with a 30 point move in the space of 5 minutes with resistance at 151.52 which was Mondays lows.  A break up above this level will bring about 151.77 as the next target, and then 152.10, the week highs the next target after that.

Across the channel, the UK benefited from better retail sales, with the divergent growth between Eurozone, Japan, UK and US becoming ever wider. Because of this its unlikely that the US or UK will have the balls to pull the trigger on rates leaving this easy bias around for longer.
ES is down 7 dollars as I write, and Dax down 40, BTFD?

Equities got a right beating!

Its been a wild few days in the Equity markets worldwide. From a position where we barely have had any 1% moves this whole year, to having them on a regular occurrence. This move was inevitable as the markets were too overstretched, but while central Banks continue to maintain super accommodative policy the risk for a melt down style move remain, as there is only so much yield chasing that can be done.
Either way it will be interesting around these levels, as I think there is still more downside to go but it will be very volatile, which will give some good opportunities for day traders, which is a good thing, since its been a crap day traders market this year.
My one real annoyance, is that I have had some kind of short in Index position for the best part of 7 or 8 months via options, and apart from being long VIX, I pretty much haven't benefited from the move down which is very frustrating, as its sods law that the move happens when you don't have your position on. But thats trading for you, the silver lining was the fact that I was long Corn and took nice profits on it although I got out way too early, and left a lot on the table.
Going forward I'm getting long Short Sterling Spreads on the this flattening that has occurred, and will keep adding to my position if it continues to go down, and generally try to get stuck into some of the volatility in these Indices.

Spreads Fall as Bunds break 141

We have seen a sell off to the low of the ranges amongst the Euribor curve as the Bund first broke 141, and now is close to testing 142, as poor PMI numbers out of Europe as well as a poor ADP report out of the US lead to more safe haven buying. The Dow is trading at 4 year highs as is the Bund, which is being fuelled by cheap money. This in theory can continue until monetary stance changes, but it seems as though there is more likely to be further easing rather then tightening out of the US, which could fuel this rally more. After being off the past week, I have entered today long 3.5s/4s in Mar13 Jun13, Im looking to go long 4.5 in Jun13Sep13 too as this has been a solid level in this spread over the past few months. We have alot to look forward to this week, with the ECB rate meeting tomorrow as well as NFP on friday. Hopefully this will dish out some good volatility. Bunds now look well and truly bid, and it has broken the trend of retracing 100 ticks on the last move up in the mid 140s, which was inevitable eventually. With yields now at 1.6% we are reaching Japan yield levels, and so any good news I think can trigger 100 point sell of at least in this Bund, although i think we will stay above 140 in the near term.