Right back to your Monday selling in the Treasuries after a Friday short squeeze. This time you can't blame Bunds for the selling, it is just Treasuries going down on its own. And now equities don't care anymore. The equity traders aren't going to fall for the interest rate scares anymore. The scarecrows are gone in the equity space, all you are left with is die-hard bulls who will only get shaken out if we go back towards those lows in March around SPX 2040.
When the equity traders are comfortable, it usually makes for boring trading in the index futures. But it does excite the daytraders who become more speculative. I am seeing a regular dose of pump and dumps in the market these days.
Sitting on my hands, nothing exciting here.
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The information contained on this website and from any communication related to the author's blog is for informational purposes only. The analysis and commentary do not hold out as providing any financial, legal, investment, or other advice. In addition, no suggestion or advice is offered regarding the nature, profitability, suitability, sustainability of any particular trading or investment strategy. The materials on this website do not constitute an offer or advice and you should not rely on the information here to make or refrain from making any decision or take or refrain from taking any action. It is up to the visitors to make their own decisions, or to consult with a registered professional financial advisor.
4 comments:
Hello, I am an aspiring trader. I would like to learn how you can tell Friday's rally was due to shorts covering. Thanks
The sharp bond rallies that happen on Friday after you get a lot of bearishness earlier in the week is usually bears puking out their underwater short positions from earlier in the week. If the market wasn't so bearish on bonds, I wouldn't have said it was short covering.
Thank you for the clarification. I am purely day trader, and it sounds to me the short squeeze you mentioned is due to position traders unwind their short trades.
I'm still new to your blog, and am curious if you hold positions intraday only or over an extended period.
Thanks again
I hold positions overnight usually, do some intraday trading too.
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