(4-12-15) Bonds Remain Cheap as Euros Move Lower in Line with Our Predictions
The Long Bond contract, which we had bought on our standing order at 6304, we had sold at 6324 in Friday’s session. Although a full point on the long side of the trade was possible, late day back-off puts the Bonds back in the buying range. We would be looking to buy the Bonds again on a move down at 163.16 in Sunday night’s trade.
We had been consistently selling the June Euro contract on our standing orders at 1.1033 filled again midweek. We were able to take 400 ticks out of the Euros by week end. We think that the short-covering rally in the Euros is now done and time for the Euros to come down to test the 1.0430 recent lows.
We continue to short the May Oil on moves to 52.00 or better covering on $1-2 dips. We continue to like that trade. Although Oil is holding $50 for now, we think the Oil will give way in the coming week’s trade.
The June Gold – we continue to trade both sides between 1194 and 1208.