Wednesday, October 10, 2012

Price action tells the story - poker game ON

With stocks selling off over the last hour, 10yr yields have been dragged lower (begrudgingly as the move in treasury yields under-performs the move in stocks).  With stocks making new local lows, today's 10yr auction has turned into a game of poker.  Will a trader trap today's shorts by bidding thru the 1pm offer?  That would probably create a mini-short covering rally.  From an isolated Market Profile perspective, treasuries are sitting just a hair below the center of value....but the weakness in stocks should push treasuries higher.

No comments:

Post a Comment