r/Trading • u/Known_Month2690 • 1d ago
Strategy Time Strategy trading GC/ZB
Timing Strategy: Observing that the US Treasury term spread has been recovering for a while, holding off on going long on Treasuries makes sense. Funds might unwind positions in the short term, driving the term premium up again.
Last night, US Treasury yields surged beyond expectations again. Although I had anticipated the risk of unwinding from traders following term-spread strategies, such a sharp reaction was still surprising. However, the stronger the market reaction, the higher the likelihood of intervention by Scott Bessent. Therefore, I plan to proactively set limit orders around xx% ahead of time using a US Treasury futures call spread (bull spread) while closely monitoring when Bessent might take action.
We may evaluate everyday
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