Today being Thursday there was a very nice trade in the bond market or the ZB. When I was watching the bond market pre-open, what I noticed was the non move in relation to the stock indices. The stock indices were down considerably before the bond market open, and the bonds had not adjusted to this move yet.
So basically, my thinking was to find a way to go long, if the chart showed me that it wanted to go long in the bonds. My first entry was at 8:35AM Eastern time. This trade only made breakeven plus a tic, as I was concerned about the 1st bar high early and a retracement. This turned out to be a wise decision, as without my protective stop trade management, then it would have went to my stop loss.
The second opportunity to get long in the bonds happened at 8:50AM Eastern time. This trade worked out beautifully. I took most of my position off at 114^15, and the last of my position a little below the Average Daily Range line (ADR) at 114^25. The first move was 12 tics or $187.50 per contract traded, and the ADR move was 32 tics or $500 per contract traded. I like to trade in multiples of at least 2 contracts in the bonds so this was per every 2 contracts traded in the bonds $687.50 per trade.
This was the best trade of the week, and I will feature it in my trading demonstration for the week. I will record this and talk a little more about this trade for your education.
Good Trades,
David AKA Tiger
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