Wednesday, December 14, 2005

Short the bond


The fed raises for a 13th time to try and cool the housing market and what did the bonds do?? go up +1 ^03?! Everyone is saying the CPI will come in tame tomorrow with energy prices being down the previous month. I think their could be a spike on the news until the traders start thinking about this months energy prices.

The plan is to short 1/2 position now, and 1/2 into the spike

short ZB 113^01

What now?

MARKET OUTLOOK the year end powers that be want to keep their bonuses and
will continue to prop up this pig of a market in the face of $62 oil , $15
nat gas and a 13th fed tightening. the dollar got pounded after hours and
futures are down. i want to short on any strength with tight stops.


A chart from yesterday from before and after the fed announcement. The $Trin was decreasing all day coiling for an explosive move and we got one.

Fed day gameplan is always cover shorts before announcement, go long... wait 15 min , sell and go short.