Eurodollar Madness

[Beach Runner]

Modesty, Mr. t ... aw, shucks.

zonetrader,
There is a book: The Eurodollar Futures and Options Handbook by Burghardt (McGraw-Hill) which was published last year. I have not read this yet; I don't know if it covers spreads but would expect there to be a chapter on the subject (although I've been disappointed before).

 

[zonetrader]

Modesty, Mr. t ... aw, shucks.

zonetrader,
There is a book: The Eurodollar Futures and Options Handbook by Burghardt (McGraw-Hill) which was published last year. I have not read this yet; I don't know if it covers spreads but would expect there to be a chapter on the subject (although I've been disappointed before).

Thanks, Beach Runner & twalker

 

[Beach Runner]

Here is a cautionary tale for any guru followers:

It is probably obvious on this thread that I know sweet f*** all about eurodollar spreads ... or so I thought.

But as my trading has descended into a long days journey into night I decided today to search further afield for advice. A fond follower of the more controversial techniques, I logged onto Google and typed in the following words:

eurodollar spreads financial astrology

It was a bit of a surprise to see that the first link suggested - and obviously, let's face it guys, it must be the most authoritative - was on trade2win. And it's someone called - well, it's me!

I know I wrote I thought there was very little written on spreads. But I didn't think what there was - at least in one small arcane corner - was written by Beach Runner! Just wanted you all to know. I'll be taking orders for the book soon. It's amazing how different one feels about losing money when you realise you are an international authority.

I had to write, dudes! lol

 

[TWI]

Congratulations.
Now, please tell us how to make money from the Winter Solstice. Markets today appear to have dropped dead.

 

[Beach Runner]

twalker,

I thought it was quiet because everybody knew something that I didn't and were waiting for some big announcement. But I will consult my runes and let you know.

My search yesterday was prompted by a glance at something Larry Pesavento had written (I note he was at that recent Traders jamboree in Las Vegas - and I'm sure you guys in the arcades wouldn't be seen dead, etc); I don't know anything about the guy but I have one of his books. He states that there is sometimes a short term change of trend (minor) in Treasury Bonds when the Moon is in opposition to Mars. I do not believe one can trade using astrology but I am interested in its possible uses as an indicator of a general background trend. I definitely did not think I would find anything on Eurodollar spreads but the above intrigued me.

Anyway, Moon opposes Mars tomorrow. And anyone reading this - this is not a prediction of anything by me. Seriously. Just throwing it in for general interest (and possible hilarity to some).

 

[TWI]

"Yeeeeaaasss" - said in Little Britain stylie

Actually I think it is wise to know when it is the full moon, but otherwise not sure about the atrological traders. Think the ones who survive are either good money managers or they sacrifice to Satan.

 

[Beach Runner]

Sacrifice to Satan? Are you knowledgeable in this area?

Aw, what the hell ... I'll give it a try.

 

[TheBramble]

Anyway, Moon opposes Mars tomorrow.

From a Geocentric perspective yes. From a Heliocentric view Mars is Trine Moon.

And we all know what that means...

Think the ones who survive are either good money managers or they sacrifice to Satan

Or both. Why miss a potential opportunity?

 

[trendie]

From a Geocentric perspective yes. From a Heliocentric view Mars is Trine Moon.

And we all know what that means...

better get the garlic and crucifixes out then.

 

[aerobinso]

Eurodollar spread this afternoon

Hi all,

I'm curious about something that I hope you'll be able to offer insight into. I have a set (5) of EDH5-EDZ5 spreads on. Most of the day, the spread was moving against me (I'm short,so the spread was moving against me by increasing). But, at about 2:55 eastern time this afternoon, the spread reversed rather drastically (went from 6.95 to 6.70), after not moving much the whole day. Also, the volume was rather erratic.

At the same time, the treasury notes and bonds weren't moving at all, and the stock indices were rather dull. Also, I couldn't see any news that would be an impetus.

I'm glad I didn't close the trade out during the day--noticed a few days ago that these spreads seem to bounce around during the day, but then settle down for the late afternoon (so I stick to end-of-day data and analyses to keep from getting whipsawed).

Any idea why such a large move all of a sudden? Also, any comments on adjusting ED spreads during the day vs. only adjusting at the end of the day?

Thank you!

 

[TWI]

Could be the low volumes around at the moment, a lot of the spreads have had some fairly erratic moves the last couple of days and due to some volume going through on one of the legs. I have not followed the ED spreads the last few days but a 9 month spread doesn't take much to happen in the outrights to move like that. Look at how the component 3-months moved over the same time and you will be able to see which outright was largely responsible for the move.

 

[Beach Runner]

aerobinso,

I am not watching the screen all the time but I noticed something similar on the 14th. I logged on, everything was quiet, then all of a sudden H/M started to fall rapidly. It went down several points in seconds. I was long and decided not to wait for the close. It did steady (and go back up) after I got out - but at the close it had only retreated one and a half points. I put this down to my inexperience and ignorance of what was happening. Glad to know I'm not always alone in being baffled.

 

[Beach Runner]

I log on after the holiday and:

Shock! Horror!

I read BBB is banned on another thread? I check here, on this thread that he started last March. And it is true.

I've no idea what heinous crime you have commited BadBB?

But, may I say, BBB, wherever you are, you will be missed by me.

Good luck, man.

 

[frugi]

His better posts will be missed by several of us, but unfortunately he refused (after a gentle PM warning) to stop disseminating false information about spread betting, kept accusing other members of being liars etc. and then sent a very abusive Email to a mod in response to a week's "trial" ban.

 

[TWI]

BBBanned That is a damn shame.

 

[Beach Runner]

twalker,

The - now infamous BBB - may be damned but not dead. I suspect he continues elsewhere (at least on this subject) with a more trans-Atlantic edge to his writing. I hope he does.

 

[tykooon]

His better posts will be missed by several of us, but unfortunately he refused (after a gentle PM warning) to stop disseminating false information about spread betting, kept accusing other members of being liars etc. and then sent a very abusive Email to a mod in response to a week's "trial" ban.

Hi folks - thanks for the support.

Frugi - it would appear that what I stated was not false after all!

{Edited by mod - link to a deleted thread removed}

Just shows that even after Charles Mackay, the crowd is usually wrong. Odd how you censor people for having alternative viewpoints of markets. Viva free speech!

And by the way, the abusive email was to you, and I called you a @$*#&<!!!

Were you ever a traffic warden by any chance?

 

[frugi]

Just shows that even after Charles Mackay, the crowd is usually wrong. Odd how you censor people for having alternative viewpoints of markets. Viva free speech!

And by the way, the abusive email was to you, and I called you a @$*#&<!!!

Were you ever a traffic warden by any chance?

You have aptly demonstrated that there is a difference between free speech and personal abuse, to the community's considerable loss. What a pity.

 

[gb2k]

twalker,

ive been following ED spreads/flys since last august, and have been actively trading them since november.......i havent been as agressive as i'd like, mostly b/c im carrying positions (fly's only) overnight--something im not used to.......so i guess my questions to you are....1. how long have you been trading ED/euribor/other STIR spreads/flys?......2. what is your usual timeframe for getting in and out of a fly?.......3. what is your usual size? and how big have you gotten?......and 4...how bad was your worst loser?........thanks for your help..