04 August 2009

Eurodollar Spreads : Low Risk/Reward Sell

  • Recall this spread (EDM0/Z0) from the old blog
  • Finally making its move towards previous top at +88.5
  • Last +86
  • Fuzzy stop. Small position given top picking. Allow for possible push above +88.5 = temporary pain
  • Add only upon clear sign of turn
  • Strong (ie less weaker than expected) NFP this Friday could widen this further, but would be offset by further widening of long Bunds/short UST spread

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