22nd May, 2013

Had the Bernanke testimony today.
HUGE volatility.

-ve:
1. I was SO taken aback by the sudden explosion in volatility that I suddenly traded very less after the testimony. I should have probably at least tried to trade 3 month spreads (which had back ups), with a small clip.
2. Range trading flies
This is a BIG negative. Not only because flies always break ranges on such days, but also because I expend way too much energy for those small positions.

Observation:
It is probably best to focus on major levels (classic camarilla/fibo) on 10yr, than try to find one on an outrights. Since there are many o/rs along the curve, exaggeration is bound to happen.

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