Euro Zone inflation data came below expectations and that should hurt my short 2 Year Schatz Futures position.
"European consumer prices fell by the most in at least 13 years in July after energy costs declined and unemployment rose to the highest in a decade. Prices in the euro region dropped 0.6 percent from a year earlier, the most since the data were first compiled in 1996" in Bloomberg
But the fact is that they barely moved and are still very much in the money. I know that this trade will take some time to fully develop, but its has always been in the money and I am playing it for much lower prices. I am really playing the big swing here. If you have the time, go read the Gary Bielfeldt interview in the Market Wizards book and go through that part where he explains how he really got rich in a single play in the bond futures. We can have a similar opportunity here in these German 2 Year Government Bonds.
The GDP report will come out at 8.30 am and a little later we will have the Chicago PMI. I am going short into the data because I expect the next big move in the stock market to be lower no matter what the economic data prints today. I am short at 987, so I don`t have many profits to play with but I am with a high risk appetite. I think we can have a meaningful correction because the market is way overbought, at least as far as I am concerned.
Anyway, I had to dress my best suit and by best tie today. And off course I am using the One Million parfum from Paco Rabanne. The long timers in this blog know what I mean. When I have big positions on, I have this small supersticion to dress to the occasion. I am sure we all have our little things.
Have a nice trading day. Don`t let them beat you.
Oil Trader`s Blog is a website for active online futures and stock traders. I will provide my real time trading decisions and my market thoughts on this webpage.
