Im going to give you a free trade opportunity today but first a free lesson in market observation....
Why are the bonds offering, despite the aggressive sell-off in risk? If you can answer this then the easiest trade opportunity will present itself...
I will give you a clue......what is the play for bonds if the democrats clean sweep the election next week?
Ok so clean sweep for democrats and we have massive steepner in US curve. WHy. Because stimulus will come thick and fast. Note the curve steepened aggressively at start of Oct when the biden/trump spread widened. It reversed at start of week but this was opp to put steepener
trade on if you believe that clean sweep will happen. That is what happened in the last 2 session as per 2-10 curve. The market is positioning itself for clean sweep. Your next question is why dont we see it in equities, answer is simple. It doesnt matter who wins election,
either way there will be stimulus coming. Just a matter of timing. So this trade is a win win, hence it has shown its strength this week! so next question , where is the easy play today.......if bonds are showing the election pricing, the next one is #USD#dollar! The play today
is to buy dollars as soon as we take out yesterdays highs. The best place to do it is in #gold and #gbp#jpy. $1855 in gold , 1.2875 in #gbpusd. Hold until close. Today is not day to sell dollar. The consensus is short dollar into the election outcome next week . Goodluck!
Correction....the play is to SELL Dollars as soon as we take out yesterdays high!
Correction: Today is not a day to Buy dollars
So there is no confusion. At some point today I will be all out selling #USD#dollar. I will do this by going long #gold long #gbpusd and long yenusd. I will buy all 3. I will signal when i buy on twitter so keep a close eye. #trading
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