The 2 year treasury contract moves to interesting levels
Yesterday's dip in the US 2 year treasury looks quite similar to what happened back in September. We bought it back then and the same logic is likely to work this time around. The US treasuries are in a positive trend and dips like these are likely to bounce right back up again.
On the weekly scale, you can barely see the recent dip. Odds are that in a few weeks, no one will even remember it.
Management and risk description
Buy on current levels in the December contract of the US 2Y. Set a fixed stop and target in the market from the start, for a known risk and potential reward. The dashboard below shows that the price trend is strong and the volatility stable.
Note that this market is traded and quoted in fractions of 32.
Entry: Enter long on current levels, around 109'13, i.e. 109.4063.
Stop: Hard stop at 109'06.
Target: Take profits at 109'26.
Time horizon: Average holding period of this trading model is about two weeks.
December 2015 US 2 year treasury futures contract
— Edited by Clemens Bomsdorf
Non-independent investment research disclaimer applies. Read more