- Looks like Risk On/Off battle ongoing, as evidenced by triangle formations on charts of some of the proxies. Even US10YY might be starting to form a possible triangle.
- Happy to maintain Risk Off positions on the basis that triangles are short term consolidation patterns of longer term trends. Eventual resolution should be in favor of underlying trend ie Risk Off.
- Until then (triangle breakout), not much more to say here. Positions already trimmed to comfortable sleeping levels while consolidation is the order of the day. No sense running big positions while markets whip around. Wait for trend continuation then go for the jugular.
- Only thing I am interested to increase is long TY (and corn too, possibly). Old longs deep in the money. Started new series of trades last Friday at 2.75%. Buy dips on every pull back. At 2.66% now. Perhaps buy some more at 2.70%.
- When markets are in triangle mode, one can afford to be very very patient in putting on positions at one's target levels.
No comments:
Post a Comment