Thursday, August 9, 2012

Market Profile - Center of value established - chance to set auction short?

Ok party people...the center of value in ZN has been established...somewhere between 133-12 and 133-14...and that's good enough for government work.


























So the question now is...will we see the top of the bell curve again (133-17 in ZN...or 105-08 in cash 30yr bonds) before the 30yr bond auction??  Only time will tell.  If ES (S&P 500 e-mini futures) can trade down to 1390, that should push treasuries up to the top of their bell curve.  Since we've already seen these levels this morning (30 minutes ago)...we might not get another chance...but...we do have Jobless Claims coming out at 8:30..so maybe that will create enough volatility for us to set our 30yr bond auction shorts. 
























One thing is clear..the high mode (center of value) has sucked in the market 4 times already today as we coil around it (133-13 in ZN).  Maybe we get one more bite?






















good luck trading...govt trader







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