Monday's Trade

Monday's trade in GBN.V went along with the price trend in the CBOE Dec. Futures contract for treasury bonds.

We had a 'gap down' in the overnight trade in treasury futures, which was reflected by a rise in the GBN.V stock price. Later in the day, a 'gap fill' in the treasury futures wiped out any gains in GBN.V on the day. GBN.V closed flat on the day.

This is just the start of the week, treasuries are bound to sell off as there would be a great deal of extended leverage in this market, forcing sell-side brokers in GBN.V to settle little by little on a trade-by-trade basis. A computer program does all the trading, so you get an almost instant response to tiny moves like this. Generally, a ~1% move down in the CBOE treasury futures will cause a ~4% move up in GBN.V.

Sell-side brokers use retail trading accounts through their own trading platforms to accomplish their trades.

The Treasury chart is ready to move down again.

source: http://quotes.ino.com/chart/?s=CBOT_ZB.Z11.E

-F6