09/08/2013

Good morning all, SnP dropped to a worrying level yesterday which certainly had thin volume bonds heading higher. I didn't pay much attention as I was away from the office so light participation
but it did look like we could get quite an explosive up move, certainly spooked me out of my Steepener trades. False alarm tho as Equities found support bonds drifted back into range even finishing at the low end.
S&P mini

bunds

Ten year

€ curve, very mid range. I still slightly favour Steepeners but I'm getting more cautious. No one expects to make their years money on trades in August. All about capital preservation right now so if I don't see anything with decent risk reward I'll be happy to sit lisening to NIN on youtube whilst working on new ideas.

The bond strength also added to temporary weakness in teds nervy longs for a while but we're back to Bor strength for now. Uptrend intact.

In an attempt to make it look like they move I've changed time frame on my Stir spreads to 240min charts.

Light data day, http://www.tradingeconomics.com/calendar

 

 

Good luck

L