Time to Short Eurodollars?

R

Roark

Is it finally time to short eurodollars? I see a LH, a LL, and another LH. What the highest the contract can go, 100? So the most that can be lost by shorting here is 0.43, which is 86 ticks @ 12.50/tick for a total of $1075/contract?
 
The ten year chart is pretty interesting. Evidently interest rates were decreased in the wake of the dot.com bubble burst starting in 2000, and the contract went upwards. Interest rates started to increase at the end of 2003, and the contract went down until it hit a level where interest rates held steady and price stagnated. After the great bear beginning at the end of 2007, interest rates were again decreased and the contract shot back up. I guess we're in a stagnant period at the moment.


<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=3018890">
 

Attachments

I've made a mess of the attachments. Maybe an admininstrator would be so kind as to delete the second post in this thread. Here's the daily chart for the last six months:

<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=3018893">
 

Attachments

Quote from Roark:

Is it finally time to short eurodollars? I see a LH, a LL, and another LH. What the highest the contract can go, 100? So the most that can be lost by shorting here is 0.43, which is 86 ticks @ 12.50/tick for a total of $1075/contract?
More...

Ha, nice call. Dollar Libor jumps and away we go!!!
 
I don't understand. Do you want to short Euro$ because:

A. They're really high and you like to short stuff that's really high?
B. You think short term rates in the US are about to be jacked up?
C. You think LIBOR/OIS is about to blow out?
 
Quote from ralph00:

I don't understand. Do you want to short Euro$ because:

A. They're really high and you like to short stuff that's really high?
B. You think short term rates in the US are about to be jacked up?
C. You think LIBOR/OIS is about to blow out?
More...

Because the group ( financials) are going down and yeilds up.
 
Quote from Roark:

Is it finally time to short eurodollars? I see a LH, a LL, and another LH. What the highest the contract can go, 100? So the most that can be lost by shorting here is 0.43, which is 86 ticks @ 12.50/tick for a total of $1075/contract?
More...

KUDOS:)
 
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