MP Bonds Feb 3rd comments required
I refer you to the chart posted dated Feb 2nd and my comments both on the chart and below then look for yourself at Feb 3rd chart and I shall await all your comments with anticipation
I don't have bond data because I don't trade it so I will wait to see your chart and then make comments...
They tested below the current distrubtion and found responsive buying from the other timeframe trader and as usually happens once we reentered the distribution the market trades to the other end. We are know looking to test outside the current distribution. My fundamental view is there is a large need for duration by institutions and this demand will drive 30yr yields down inverting the curve.
you said "toying with the idea of selling 113.10 113.15 and 113.27" and you got 113-14 high today. did you sell 113.10 or higher...?
novastar first time up I did the second time was too late in the day without any movement late on a friday but the 113.27 is still in mind. I will see development early next week. Now rememeber that next week we start a brand new distribution for the quarter due to the auctions. and BSD I agree entirely . The breakup level was 112.22 and I too would not be surprised to see a massive invertion of the curve due to pent up demand for long dated paper BUT also recognise that everyone is looking for that so be on the lookout for any clues which say the opposite. Auction weeks are what I describe as poetry in motion. it is amazing how the primary dealers are able to run the market one way then hold hold it then run i the other way then they get the auction results and presto the market descides which way to go. 3 times this coming week. BE AWARE THAT PRICE VOLATILITY DURING AUCTION WEEKS EXPANDS TO TWICE NORMAL. be very very disciplined with stops.