More complete analysis forthcoming re: Draghi...
In short, the "sell the inauguration" trade looks long in the tooth with selling poised to return to treasuries aided by a dovish surprise from Draghi this morning.
Front month treasury futures look to have made a head fake breakout on Tuesday AM and have since collapsed through support at 124'070 with a failed overnight rebound, to boot. Despite the 124'000 print at the close of Draghi's presser, technicals point to further downside risk: firstly, at the 123'300 (50% fib retracement) level, followed by 123'190 (62% fib retracement).
I'm targeting 123'090, but there's room to run lower towards 122'270
In short, the "sell the inauguration" trade looks long in the tooth with selling poised to return to treasuries aided by a dovish surprise from Draghi this morning.
Front month treasury futures look to have made a head fake breakout on Tuesday AM and have since collapsed through support at 124'070 with a failed overnight rebound, to boot. Despite the 124'000 print at the close of Draghi's presser, technicals point to further downside risk: firstly, at the 123'300 (50% fib retracement) level, followed by 123'190 (62% fib retracement).
I'm targeting 123'090, but there's room to run lower towards 122'270
