Draghi forces!Lending Germany at 0,50 % for 10 years?Sell Calls
Well, I'd rather lend Germany than Japan for 10 years, but who the hell on Earth believes we won't have more than 0,5 % Inflation on average in the next 10 years??? Of course buyers are not buying all the shtloads of EU debt because they offer a great value, but because they are forced by the ECB to do it.
Look at Italy! The totally bankrupt country which delegated Draghi to ECB has 2 year bond yields in negative yield first ever in history!!! hahahaha OMG. People pay to hold Italian Debt. So what do you think about QE and Draghi now? ;-)
Of course this whole sht will end very badly, once ever savers realise they got robbed out on massive negative real interest rates, and when they realise the global debt is just increasing further, while there are less structural reforms.
Ladies and Gentlemen, the King(s) is (are) already naked!!!
OK, the truth here is that Italy's Monti is at least using this grace period of zero funding costs to do some structural reforms... maybe he'll have enough time to try the almost impossible... turn a countries economy back on a sustainable path. but the others?
Back to German Bunds.
Weekly:
- Ichimoku is more bullish biased. Key support level is ard 154,75-155
- Heikin Ashi is bullish. haDelta makes a new confirmation this week.
Daily:
- Bullish Ichimoku, bullish trend channel. Key support is ard 155,50.
- Heikin Ashi is bullish.
German 10y yields at 0,50 %. Should we fade this and short an otherwise bullish market? I don't think so. Why to fight with it here and now? However, closer 0,10 - 0,00 % I would certanly do it anyway. So the idea is:
Sell Jan/16 160 and 161 calls! They offer a nice premium, while I doubt that on any increase of QE the cash mkt yield would drop much below zero on 10 year bonds!
Look at Italy! The totally bankrupt country which delegated Draghi to ECB has 2 year bond yields in negative yield first ever in history!!! hahahaha OMG. People pay to hold Italian Debt. So what do you think about QE and Draghi now? ;-)
Of course this whole sht will end very badly, once ever savers realise they got robbed out on massive negative real interest rates, and when they realise the global debt is just increasing further, while there are less structural reforms.
Ladies and Gentlemen, the King(s) is (are) already naked!!!
OK, the truth here is that Italy's Monti is at least using this grace period of zero funding costs to do some structural reforms... maybe he'll have enough time to try the almost impossible... turn a countries economy back on a sustainable path. but the others?
Back to German Bunds.
Weekly:
- Ichimoku is more bullish biased. Key support level is ard 154,75-155
- Heikin Ashi is bullish. haDelta makes a new confirmation this week.
Daily:
- Bullish Ichimoku, bullish trend channel. Key support is ard 155,50.
- Heikin Ashi is bullish.
German 10y yields at 0,50 %. Should we fade this and short an otherwise bullish market? I don't think so. Why to fight with it here and now? However, closer 0,10 - 0,00 % I would certanly do it anyway. So the idea is:
Sell Jan/16 160 and 161 calls! They offer a nice premium, while I doubt that on any increase of QE the cash mkt yield would drop much below zero on 10 year bonds!
