- Time to get involved in Rates markets again after long absence given warning shot from the Fed yesterday.
- Initial trade here - sold EDZ0 @ 98.965. Stop above contract high at 99.125 ie risking USD 400 per contract.
- Monthly : Still uptrend. No sell signal yet.
- Weekly : Knee jerk reaction to DR hike down to 98.925 this morning, below previous top at 98.97. This is early indication of weakness.
- Declaration : Am looking to average in higher up as part of original game plan; this is not about averaging a bad trade.
- This trade has large negative carry. Current 3 mth Libor @ 0.25% vs 1.035% implied borrowing rate. Plan to trade EDM0 from long side at some point to fund the core EDZ0 short.
- See Victor Niederhoffer on Fed DR changes.
- Addendum 9:35 pm 19Feb10 : Limit sell order at 99.02 filled on benign US CPI (-0.1% core).
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