Neutral Trading Strategies don't work in these markets
- Thread starter elitetrader02
- Start date
Liquidity crisis began Feb 28th, even the 10 & 30 year treasuries have very thin liquidity - this is big red flag and why the Fed is now committed to pumping $1.5T into the market, which is more than the entire QE1. Now its QE infinity.
The Fed/central banks have created such huge distortions & made the market very fragile, when they are not juicing it look out below!
For stock indexes ETH trading I have been mostly trading the Nikkei (Singapore/Osaka), it has far greater book depth & stable spreads.
Rumors are that some hedge fund mgrs are freaking out about finding some of their older 10 year treasuries are not legit, meaning they are worthless.
The Fed/central banks have created such huge distortions & made the market very fragile, when they are not juicing it look out below!
For stock indexes ETH trading I have been mostly trading the Nikkei (Singapore/Osaka), it has far greater book depth & stable spreads.
Rumors are that some hedge fund mgrs are freaking out about finding some of their older 10 year treasuries are not legit, meaning they are worthless.
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What do you mean how can treasuries not be legit?
Off-the-run bonds are trading at a heavy discount to on-the-run.
This is just a rumor having to do with 10 year treasuries that are older with bad or no collateral. Maybe it's 10 year corp bonds or just pure B.S.. That market is so darn complex - way over my head, I should not have not have even written that.
You could clearly see it in the bond ETF's discount/premium
https://ycharts.com/companies/TLT/discount_or_premium_to_nav
...spot on! This cascade of liquidations in equity markets was due to lack of liquidity. And - as usual - the clowns at the NY FED reacted too late....!
The "muchachos" at 33 Liberty St don´t have the necessary "grandes cojones"....