Below is a bit complicated but a great trade. We start with a guaranteed discount.
The value lines for 6J are the difference between the Japanese 10 year bond and the US 10 year bond, and the inverted TUT spread.
Value is flat but 6J is falling, so we look for a turn after a measured move down.
Buying down here at US cash open gives us a great value trade.
As price rises so does value, so we can ride it. The measured move up is very high and we ride it.
We can see the massive volume beyond the measured move in to the wholesale price area of 0.0069500.
This is where there is sufficient liquidity for the commercial buyers to unwind their huge positions.
This trade makes $1,780 per contract. Trading 3 contracts is very reasonable, so this would be a $5K trade.
And risking $150 per contract would be plenty.
