Best Trading Strategy Of The Week - Buying US Treasuries On Dips
December 27, 2012 - 10:04am
As previously discussed on the govttrader blog, the selloff from the 1st half of December has come and gone. While that does not mean that large long bets have been placed on a US Treasury rally, it does mean that a large short position in US Treasuries has been covered. It is for this reason that buying dips in US Treasuries has been the safest trade for the last week. Any US Treasury trader knows that the time to buy is when the last seller has stopped selling. Well, for the time being, that appears to be now. For the past week, every day has seen the following pattern1) A center of value develops, defining a simple bell curve2) The bottom of that bell curve has held every single time. 3) Buying that dip to the bottom of the bell curve, and getting flat on a pop above the center of value has been the easiest daytrade i've seen ...
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