I Believe Short Term Interest Rates WIll Come Up And Stocks Markets Will Trade Lower

Wednesday, October 14, 2009

As you know, I am shorting the S&P Futures and also shorting the 2 Year Schatz Futures, the 2 year german government futures. This is how I am going to play the next few weeks. My son will be born any day now and I am playing for the intermediate term because I may not be able to trade for a few days or weeks. I plan to be keep my trading platform shut down for the first 2, 3 weeks after Enzo`s birth.

I am going to a music concert tonight, trying to chill out a bit and re-energise. This week was more intense then the last and I feel that is because I traded in a discretionary way, leaving my S&P Futures system "off". I had commented on that earlier. Its much more tirying to trade this way. But its my natural style and I feel that when really opportunities present themselves nothing beats discretionary trading.

I am sensing two good intermediate term opportunities. The first is to short the stock market and the second to play the rise in german short term interest rates. The ECB has a single mandate and that is price stability. Jean Claude Trichet will begin hiking at the slighest inflation warning signals. We are not seeing any inflation in the Eurozone for now but I am pretty sure that short term rates will begin to trade up very soon. Check the 2 Year Schatz price graph to gain some perspective on its historical range.

This may be one of the greatest opportunities for the remaining of 2009. I won`t let it go by.

Petroleum Oil Gas info Blog is a website for active online futures and stock traders. I will provide my real time trading decisions and my market thoughts on this webpage.


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