Maybe I should start including x day high's as virgins. Yesterday 118'10 was the high of 10 sessions. Today 118'165 was the high of the past 20 sessions. Price action was almost identical at both price points. Grabbing the low hanging fruit is easy pickins if your not greedy.
118'165 was not only the high of the past 20 days but also the high of the last 40 days. Had I been paying attention I would have loaded up with more contracts. If that area can hold tomorrow expect a nice selloff. Should be interesting - especially since tomorrow will be the 8th session for this rally which started on the 23rd. The attached chart show the profile for the last week. Higher value and higher POC's. Tomorrow already has some pretty intriguing values: 118'165 - high of the summer (touched but not violated today) 118'15 - value area high 118'125 - virgin POC (for the moment)
Lots of news this morning. I usually wait at least 15 minutes after the last major news release before forming any bias for direction. Will be back shortly.
If you are shorting treasuries for any significant time you are going head to head with Bill Gross. Please let me know how that works out.
well... i guess i can take solace in that i could "feel" that today was going to have fireworks. Strong buying breaks through the contract high and sets new contract highs. No virgins up there in uncharted territory. The only real opportunity was a pullback to the 21EMA at 11:30 am CST right at 119'00. Of course I did not take it because i had switched over to 6B to scalp a few bucks. Also - there actually was a virgin that 118'125 but the market touched her on news and for me that's a no-no. For the trader with brass balls it was the trade of the week.
When I'm not taking advantage of innocent young virgins I still need to collect nickels and dimes. In order to stay disciplined with my virgin strategy and still make a few bucks without risking a whole lot (a theme with me), I switch from treasuries to CME FX futures. I used to trade via FX bucket shops (they all are) but found that the volume CME provides gives me enough of an edge to scalp with some degree of consistency. I usually trade 6B and try to fade low volume thrusts thru the 21 EMA. The attached chart shows the three trades I took today while I wait for Bill Gross to unearth some fresh virgins for me to exploit. note: 6B = British Pound and each tick is worth $6.25
I'm a little late today but it's ok as traders didn't like the employment figures and took ZN higher into new contract highs. Yesterday did unearth a new virgin - so... Buy virgin @ 119'015