Tuesday, 20 November 2012

Market Turn on hope of Fiscal Cliff solution

So the past couple of weeks we been selling off on the back off fears that there wouldn't be a resolution to the fiscal cliff issue and yesterday we have a massive rally cause all of a sudden we might get a resolution! That's why you got to love this market.
We pushed up big in equities across the globe, with 1-3% gains all over.
Bunds have pushed below 143 after the big run up, and now we seem to have consolidated below this mark, despite a French downgrade.

On the spread front, it has got to be the worst conditions I've seen in my time trading. The volume in Euribor and Short Sterling has been lower then in the Christmas periods of past years, and with ranges of 2-4 ticks in recent days has made day trading this extremely difficult. The strategy now seems to be to pick the right levels and hold on till it moves.
We were at the bottom of the range in Euribor across all pairs, with 6s available in Mar14Jun14, 6s also there in Jun14Sep14, which were notable buys at the bottom of the range. You would have had to hold for a good few days before finally getting some profit out of it.
I do really hope something kicks off in the short end soon as its a non mover at the moment.
Looking forward, we have US Thanks Giving holiday on Thursday, which is likely to depress volumes further so maybe next week we might have a bit more participants to the market.

Short Sterling spreads nudge higher on hawkish Fed; Walmart blowout

As most must know trading Short Sterling is a bit of a bore, and has been for a while. Having managed to get out of my 2 month hold before,...