Nov 082012

CL 12 12 (1 Min) 11.08.12

11/8/2012 30-yr Bond Auction (0801 HI time / 1301 EST)
Previous: 2.90/2.5
Actual: 2.82/2.8
Started @ 150’00 (0801)
1st Peak @ 150’27 – 0802 (1 min)
27 ticks

Final Peak @ 151’13 – 0831 (30 min)
45 ticks

Reversal to 151’00 – 0903 (62 min)
13 ticks

Notes: Report is scheduled on Forex Factory at the bottom of the hour, but the spike always breaks 1 min late. The highest yield dropped more than expected from the previous auction, signifying much higher demand for the bonds in lieu of the election results. With JOBB you would fill long at 150’03 with no slippage. The spike crossed all 3 major SMAs at the origin, the PP / R1 Pivots, and HOD at varying points up the spike. Since it blew through all of these potential areas of resistance and finished the bar 1 tick off of the max, stay on the ride until the end and close out with 20 or more ticks. After the 1st peak, it ratcheted higher for the next 30 min, crossing the R2 Pivot and peaking at 151’13 for 45 ticks total. The reversal reclaimed 13 ticks in about half an hour back to the R2 Pivot. By far the best auction trade yet!