Wednesday, September 5, 2012

Sell the top of the bell curve? I just did.

So the market seems to have given us a pretty symmetrical bell curve thus far (with today's high mode just a couple ticks lower than yesterdays high mode).  The top of today's bell curve thus far is 133-22, and I just sold 1 unit there.

The market has drifted higher this morning after some PMI data out of Europe and comments by Van Rompuy (comments which seem to be empty to me...perhaps the market was expecting something more substantial).

With the 10yr buyback at 11am today, I don't expect the market to fall apart (that happened already with yesterdays 7yr buyback).  So, my expectation (and the models) is for for the market to return to the mode (133-16+/17) at which point I will be getting flat.  This is a small range (only 5 ticks) so only using 1 out of 6 units of risk.

good luck trading....govttrader out

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