-110712.jpg "Click to enlarge")
11/7/2012 10-yr Bond Auction (0801 HI time / 1301 EST)
Previous: 1.70/3.3
Actual: 1.68/2.6
SPIKE WITH 2ND PEAK
Started @ 150’18 (0801)
1st Peak @ 150’09 – 0802 (1 min)
9 ticks
2nd Peak @ 150’03 – 0807 (6 min)
15 ticks
Reversal to 150’14 – 0815 (14 min)
11 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 dropped moderately from the previous auction. With more demand for the bonds, the yield fell, causing the ZB to spike short. With JOBB you would fill short at 150’15 with no slippage. Look for it to eclipse the 50 SMA and close out with 5 ticks. As it crossed on the 200 and 100 SMAs, this is a good place to enter a reversal trade. It bottomed out at 150’03, 4 ticks lower than the 200 SMA, then reversed to cross the 50 SMA for 11 ticks 8 min later.