Short Alert: Lumber (LBS X6) + BUXL (German Gov Long bond GBX Z6)

I am posting recent short alerts taken, flipping previous long positions:

As per the day charts below, Lumber went long 6/9, and has rotated lower since, generating a short entry 15/9, for a loss of -10$/contract from the previous long signal (blue up arrow):

Lumber.JPG

The BUXL went long for the first trade of the Sep-Oct seasonal program 6/9 (grey up arrow), which rapidly reversed following ECB comments two days later 8/9. This reversal was impart bad luck, as the announcement fell on the last trading day/roll for GBX U6 to GBX Z6, and as such, the GBX U6 which was still on the board….illiquid, as a result did not generate what should have been a short signal on this day (8/9), as the Dec contract was the front month, but not on the baord. And so, I was forced to exit the market at a loss, meanwhile the Short entry signal was triggered 9/9 (the following day) which had seen the market move 10pts (continuous contract) as per the day chart below. If that signal had been generated on the ‘roll’ this would have been a highly profitable short trade, completely offsetting the previous loss on the long trade…..and some. This new entry in the Dec contract, as per the ‘grey down arrow’ associated with the red bar, is not optimal trade location on the day chart, leaving some risk with a stop at the 196 level.

buxl

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