A faint light is often all that is cast upon truly outstanding positioning strategies before they ready. Fundamental analysis, awareness of monetary policy developments, positioning conditions and other trend characteristics followed allow candlestick charting analysis to shine needed illumination. Martin B. McGuire
Thursday, April 30, 2015
Eurodollar Calendar Spreads Widen
examined Eurodollar calendar spreads yesterday with an eye toward wider yield
spreads likely to prevail (See ‘What if Fed Not ‘Off’ on ‘Dot Plot’?’).Today, these spreads are well higher following
a new low in initial jobless claims reported.Claims have not been this low (262K) in 15 years, suggesting that the weaker
March payroll report may not be the start of a weaker jobs trend.
trades higher by 6 basis points to 138, but is still very much below the 250
bps the Fed’s ‘dot plot’ suggests.With
outright yields on Eurodollar and Treasuries having jumped as much as they have
today, it makes sense at this point to consider using calendar spreads for any
adds to bearish positioning.