ED Spreads : Downmove in Motion

• Last +78
• Now that down move is underway, expect to see +68.5 as first objective. Re-assess to see if there is scope for a much bigger move then
• +89.5 should be the contract high for this spread on a weekly closing basis. Would take a huge turn in fundamental outlook to take this out now
  
• Added to short at +83.5 earlier tonight. Original trade on since 03Aug09.
  
• Interest rate spreads do not change direction easily. When a new move is evident, it is usually trending and indicative of new interpretation of fundamentals. Mind those Risk On positions!