Thursday, October 18, 2012

So what is the next trade?

After the last 2 days of weakness, treasuries have caught up with stocks and EUR (our current risk assets).  Recall that in the 2nd half of the month as we approach month-end, I am bullish on treasuries, and this month should be no different.  I fully expect at some point before the end of the month for ZN to outperform ES.  The only asset in our risk matrix that has failed to keep pace is oil.  Perhaps if there is another spike down in oil, there is a long CL / long ZB trade to put on.

In strict Market Profile space, 132-04 is about to become the new mode in ZN.  This should expand the top of the inner bell curve to 132-09

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