When this thing moves don't ask why no one cares about inflation (the FED- like they don't care about the dollar!) just jump on board in the last month or so I have seen this thing sell off two handles from 2pm to 3pm once and rally 3 handles in two days the mkt is trading on emotion and there are a lot of opportunities if you listen to the chaos and go with it! Spooz tanking close to monthly support with the Ambac plan failing is all it takes for this stuff to move are fear and emotion. Just like the spooz rallying on C Gasparino saying $hit last week about Ambac. Like I have said before in previous posts this whole mkt is determined by what happens to Ambac, FGIC or MBIA. The Bondo is in its own world no really sees any fundamental reason why this is happening the curve should be flattening but it isn't...
don't worry bro, I try to fade the thing and ruin my whole day sometimes it is hard as a trader to see something move so much and not fade it even though the last 6 months have been volatile it still is difficult to buy something when it is up a handle overnight! Half ticks Monday we'll see how that goes could be brutal!
Things indeed look ugly with these 1/2 tick 1/4 tick changes. It may be too early to judge (many spreaders are probably being reworked) but a pro rata algorithm may be in the future for the 5's at least. With over 2,000,000 contracts of open interest the bid/ask needs to be greater, otherwise it's unmanageable.
Scalping the bond was just awful with the new tick increment, no size in the book and no way to judge direction. first in line orders are completlely usless, F this @#!$!@#$
I agree what a shit trade with the half tick, gj CME you just lost all my bond volume. Im goin over to the 2 and 5 yr notes now i dunno about you guys. No more day-trading bonds, just positioning.
These 1/2 ticks in the Bondo lick my ballsac. Now we have a whole 2 1/2 ticks visible on the book. Time to go back to trading spooz.
the fu$ked thing right now is that treasuries are so much more volatile than the spooz the spooz are trading like the treasuries used to and the treasuries are trading like the spooz used to! The spooz just sit in a 2-3 handle range for an hour then move 4 handles in 1 minute very odd. The 1/2 ticks are very dangerous but if you can fade the excess you can take out 2-3 ticks real fast.