Tuesday, June 09, 2009

Chart of the week - 10 year Treasury Notes

Firstly, few words "of wisdom" (how funny that is to hear from someone who has "Dumb Trader" engraved in his nick? Yup, that is what "DT" in DavidDT" stands for)

Why traders fail?  They have not formed THEIR OWN opinion, they follow short term market swings when putting on longer term trades, they read way too many "other guys/girls" trading blogs, in short - most of the "traders" have no conviction in their own trading ideas.  The point is - none is right all the time, form your opinion, stick with it or change it, control risk, but do it based on your own research with deep understanding WHY you do what you do, if you don't do that - the easiest way to handle trading would be to just give me your money (not for managing it - I am NOT financial advisor), because without YOU understanding WHAT and WHY and WHEN YOU are doing - you will end up broke, so if you just handle me your money at least someone you know might benefit from you not doing your home work.  No? OK, back to the charts...

Below are 2 charts of 10 year US Treasury Note Futures and, essentially the same of TNX (just in reverse)

They both tell us that this week might just mark possible meaningful move to the upside (and downside for yield)