Shorting ZB futures here at 146'03 with a stop at 147'05. After a significant run-up today, I'm fading the action in bonds. For those of you unfamiliar with futures, ZB is the trading symbol for the 30-year bonds. The minimum movement in a futures contract is called a tick, and for ZB each tick is $31.25. There are 32 ticks in one ZB point, which equals $1000 per point.
Here's a look at a 4-hour chart of ZB:
Due to the nature of trading futures, I keep my stop relatively tight in order to minimize losses. For this trade I'm risking 1'02, which is equivalent to $1,062.50. Since entering the trade, ZB is trading lower, currently at 145'24.
No profit target in mind as I usually exit trades based on signals I watch. Let's see where this goes!
I'll be posting more trade ideas for gold, crude, bonds, and the markets. More to come so please stay tuned!
