10 year Bunds/UST Spread : Huge Disappointment

• Recall monthly double bottom at -67, NL +11, objective +89
• High hopes for this trade crushed (long at +13, out at +31)
• Spread did widen to +40 max early Aug09 after NFP (less weak than expected = temporary pricing of rate hikes, subsequently completely reversed)
• Now back to +12
• Weekly now broken uptrend line, as per US10YY
• Monthly close back <+11 = move back towards negative spread
• So, instead - now Buy UST, sell Bunds?
• The best trades sometimes are failed technical breakouts because likely that many are wrong-footed and just stop losses alone could push the initial trade into deep profitability very quickly.