Wednesday's Trade

Buyers that came into the stock yesterday and supported the price are probably very surprised at the results of today's trade. Actual sellers came in and dumped their stock in frustration into a very soft market, literally handing it over to the sell-side brokers on a silver platter with a sprig of parsley.

They were hoping to sell into a rising market on news, but this is not necessarily a market with much support, as the active players are all on the sell side. People actually sellling their shares into this market would very likely be totally crushed under their investment.

We should have closed at least on the 50-day MA, but we may have to wait until tomorrow for that to occur. We theoretically should have been up 6% over yesterday's close, but that didn't happen.

In the meantime, we are a day away from the price level that would begin to activate a whole options chain in the long treasury futures contracts in favour of the puts. I continue to believe that the intermarket activity here will set the tone.

What that means is @140, the treasury market will begin to sell off, raising rates at the long end of the curve. This can only favour equities, as it has the whole week. By the end of the week, the results will be in.

What that means in terms of GBN.V shares, is that there is no longer any room for error, that all sell-side brokers that sold millions of GBN.V shares into the market and bought into treasuries will have to unwind the trade.

The one advantage of watching the futures in treasuries is that they trade on a 24 hour basis, while GBN.V shares trade only during market hours.

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