Today's NFP print of 96k repriced the market too high for yesterday's shorts to hold onto their position. As i write this, they are in the process of covering their short position in a very small window of time...its just how it works when you have a position of 200k 10yr futures. Its impossible to tell exactly how high this short covering will go. However, we do know that after the last short covers, the market should fall back down. So, we just need to wait for the price action to show this before we can get involved.
I agree with the chatter that this NFP print increases the probability of QE3 from the Fed, but really, Market Profile doesn't care. Price action is price action. Now i just need to wait it out and see what the next high probability trade is.
govttrader out...
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