Price action trading day-trading the t-bonds off pattern
The author may or may not have positions in Financial Instruments discussed in this newsletter. Currency markets usually exhibit a Seasonal pattern at their countries fiscal year end. Chart 3 is a chart of the BON Spread.
Note this trade uses the December Futures contract due to the length of the trade taking you into First Notice day for the September contract. Even the best Seasonal patterns can fail on any given year. Perhaps this is the reason for such a high frequency occurrence.
Some countries will repatriate their currency or perhaps make expenditures to balance their financial statements for year end. By no means do any of its contents recommend, advocate or urge the buying, selling or holding of any financial instrument whatsoever. Reprints allowed for private reading only, for all else, please obtain permission.
The blue line represents the 15 year average price action of the 5 year Treasury contract. I would like to thank MRCI for permission to use their content for this article. Even the best Seasonal patterns can fail on any given year.
The yellow vertical box represents the optimal Seasonal window. I would like to thank MRCI for permission to use their content for this article. Much like Chart 1, price on the 10 year Treasury price action trading day-trading the t-bonds off pattern started up coming into the Seasonal buy window. Disclaimer This newsletter is written for educational purposes only. The dark black line represents the actual Spread this year and the blue line represents the 15 year average price pattern.