Thursday, May 7, 2015
Bund; If I had a Hammer…
The old Pete Seeger song ‘If I had A Hammer’, sung by Peter, Paul and Mary comes to mind when I see today’s Bund Candlestick.
The June Bund future traded its largest daily range since August of 2011. Outside of the two sessions of Aug 5 and Aug 8, 2011 there were no other single sessions in the last five years that had as big a range. Of course the Bund has recovered completely from the early morning low that reached a new low for the year at 151.44. The session has created a candlestick that screams of a bullish hammer. The outsized lower shadow (difference between opening and low prices) speaks of seller exhaustion while the relatively small differential between opening and closing levels suggests indecision.