Price Action Explanation wanted

Discussion in 'Financial Futures' started by DreamTrader, Apr 17, 2011.

  1. Hello, everyone. I have been observing the price action of /ZN (10 year Tnote) or /ZB (30 year Tbond) since the beginning of this year. As a newbie, I am very thankful for an explanation for the price gap down happened in Feb 2011.

    On Feb 20 , 2011 (Sunday), both /ZN and /ZB opened down significantly (I assume on the electronic platform since it happen on Sunday night), compared to their close price on Feb 18, 2011 (Friday). They gradually worked their way up for the entire week on very light volume compared to average. For the next weekend, no gap down happned and their volume was back to normal.

    Can anyone shed the light on what event caused (if any) the gap down over the weekend? Why is the trading volume so low for this week (the week of Feb 20)?

    Thank you very much for anyone's insightful reply.
  2. Look at a chart. The price went up on Feb 20, 2011 not down.

    Are you mixing up the March and the June contracts?
  3. 1) ?....President's Day weekend.
    2) Volume was "low" because of the shortened week. Monday was a holiday. Sunday was a short-short session.
    3) I don't remember news from that weekend. You could look at page-1 of the Wall Street Journal or Investor's Daily for that. :cool:
  4. Dear jeb9999 and nazzdack:

    Thank you so much for your reply. I attached the price chart for 10-year TNote along with this reply. Please check page 1 and 2. I think that I am talking about the June contract. However, I could be totally wrong as a newbie.

    I checked the news and I can not find anything significant over the weekend. Again, I could miss something.

    Thank you for your continued feedback. Thank you for everyone else who replies to this message. As a newbie, I really want to find out the reason behind the weekend gap down.

  5. Wasn't that around the time that PIMCO started selling US bonds?
  6. gtor514


  7. You are doing exactly what I said you were doing - you are mixing up the March and June contracts. There was no gap down on 02/20.

    You have March contract data through 02/18 and June contract data starting 02/20.

    Take a look at the June contract at any futures charting website. The June contract never traded above 120-06 in the month of January. Those above 121 January prices are the March contract.
  8. Dear jeb9999:

    A personal thank you note is sent via private message. Thanks.:)
  9. DT, if you want to chart a particular month in ToS, add the letter for the month (Google them) and the last digit in the year.

    For example ZN June would be /ZNM1 ("M" for June, "1" for 2011)