Update to the August 2012 post on the Ultra-bond Future
Back in August we touched on the topic of the UB which was showing signs of weakness up around the 163 level just as equities were gaining footing while the NDX traded near 11 year highs…
(original post) “Where is the bond cash going? not sure yet, but something is keeping the indexes bid as we consolidate…..
below 163’03-163 even could mean a drop into that lime green box you see below.. this area has not been visited since bond prices started to jump a the end of March/beginning of April 2012… clearly if the green area becomes the range the 146’12 level becomes major support… a break of that would mean 126’18….
i would be wary of a bounce around the 163 level, just as i would be aware it could fail.”
That being said..
take a look @ the weekly chart below and daily chart above, the 163 level gave way to a 11 month low of 154’18.. The current UB price is 155’28… About the cash which came out? volumes were significant if you look especially at the week of 11/26. -chart after jump.