May 052013

ZB 06-13 (1 Min)  4_10_2013

4/10/2013 10-yr Bond Auction (1301 EDT)
Previous:  2.03/3.2
Actual: 1.80/2.8
Started @ 146’08 (1301)
1st Peak @ 146’04 – 1302 (1 min)
4 ticks

Reversal to 146’13 – 1323 (22 min)
9 ticks

Notes:  Report is scheduled on Forex Factory at the top of the hour, but the spike always breaks 1 min late.  The highest yield fell sizably from the previous auction. This caused the ZB to spike short for only 4 ticks in a dull reaction.  With JOBB you would fill short at 146’05 with no slippage.  All the SMAs were in a tight fist near the origin and the LOD was just a few ticks lower.  You would have seen it bob between breakeven and 1 tick in the green for about 1 min, before it slowly reversed.  Recognizing it as dull, move the stop loss in and try to exit between breakeven and 3 ticks loss.  The reversal was fairly quick for 6 ticks, then took another 18 min for the last 3 ticks.