The ACD Method

Maverick74 said:
A much better trade is buying this curve on the pullback (10's and 30's) i.e flattening. I think this curve is going to keep flattening until we go into a recession. It pulled back nicely the last few days and this is a pretty good entry.
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You referring to FLAT Mav?
 
Is that typically done as a 2:1? So sell 2 ZN and buy 1 ZB? I'll check that out. I've briefly looked into the yield curve spreads, but haven't spent much time on them for bonds.
 
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FCXoptions said:
Is that typically done as a 2:1? So sell 2 ZN and buy 1 ZB? I'll check that out. I've briefly looked into the yield curve spreads, but haven't spent much time on them for bonds.
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3:1 usually. The CME website has all the ratios for the various interest rate spreads to make them duration neutral, not vol neutral.
 
http://intelligence.house.gov/sites/intelligence.house.gov/files/documents/declasspart4.pdf

Off topic, but the 28 blacked-out pages of the 9/11 Commission Report have finally been declassified.

Summary: Saudi Arabia played a major in the attacks. I would assume were are seeing this report finally declassified 13 years later because we no longer need Saudi oil due to massive increases in our domestic drilling.

Shame they didn't release this 5 years ago...oil would've likely made a good A up and trended all day!
 
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