Friday, September 7, 2012

Short covering complete

So trading volumes in the bond market are tapering off, and it feels like the large short trader from yesterday has covered their position.

So how do we trade the market now?  With no levered supply condition embedded in the market, i expect some high mode to develop and reign in the market.   However, there are still auctions next week to contend with.  There is a community of traders who don't begin their pre-auction setup until after if we sell strength now, we should find community in that effort.  I'll be waiting for another opportunity to sell strength...the day is young.

govttrader out...

1 comment:

  1. some 20 years ago i read Mind Over Markets by Dalton. it was an early intro for me to Market Profile. in college, on a day off, i would use graph paper and track the long bond futures on a Telerate machine in the library with it. I had always thought MP was a new way to look at the short term, is underutilized, and was thrilled when Bloomberg made GIMP available. it is going to be simply AWESOME to watch you use it in near real time. good luck!!!!!