Following the ECB press conference today, several signals were generated; from a technical perspective, the chart for German Long Bonds looked like it was setting up for a rotation – from the recent pull back into 182 level. This morning, GBX went long at 186.16 Dec contract as per the recent ‘up arrow’ on the day chart below; MST generated a confirmation long signal in the French OATs (French Long Gov Bond) – for a combined long signal from the long end of the Euro gov bond-curve – though not confirmed by the US FI space. Here’s a look at the chart below: This long signal sets up for a nice R/R trade, with the signal coming off the consolidation at support in line with previous lows – for a technical triple bottom – for what appears to be a bracketing response in the market, with expectation back to the 190’s.
Futures Trading 