Short Squeeze Triggered with Room to Run
Posted in U.S. T-Bond, U.S. T-Note, derivatives on February 11th, 2009 by Commodity Trader – Comments Off
The financial markets expressed their discomfort with the lack of details provided on the restructured TARP plan and the uncertainty over the economic stimulus package. Equities seemed to slide off of the cliff, while Treasuries finally experienced the short covering rally that we have been looking for.
Trade was thin, and seemed to get thinner as the afternoon hours approached. It is apparent that many speculators weren't willing to accept the possibility of excessive volatility at the hands of our elected officials...and I can't say that I blame them.