Tuesday, August 14, 2012

ZN Market Profile Mode Shift - 133-19 is the new mode

While it is still early (3:30 AM in NY), the overnight activity in Japan has shifted the ZN mode down from 133-24 to 133-19.  This is one of the uncomfortable types of moves that occurs when trading with market profile, and is the reason why I only used 1/6 of my risk capital on last nights trade.

While it is still too early to tell if the mode will shift back up higher...for the moment the markets price action must be respected.  This pushes the bottom of the bell curve to 133-12.

Recall I am long 1 unit from 133-20.  So, If the market trades down to the bottom of the bell curve, I will buy 2 more units, with the expectation of getting flat if we get back up to the new 133-19 mode.

govttrader out....

1 comment:

  1. Is this 133-19 just a temporary mode in order for the FED to buy 5e9 the 10Y bonds cheaper at 11:00?