$APE Jumps 25% in 3 hours
Welcome to Issue 058 of Masters in Trading Digest.
What started as a quick tidbit about Bonds turned into an important lesson on the yield curve. Take your time with the examples and feel free to reach out to support@mastersinrtading.com with any questions.
This Tuesday, I will host a live session to explain why trillions of dollars seem to be just frivolously splashing around the Metaverse. Here’s the fun part – I’ll break down exactly why Moonbirds NFT collected $364m in sales in just 5 days.
A few thoughts to consider before Tuesday’s free presentation.
- Was there ever a time when you were scared to buy items over the Internet?
- Did you ever say anything like, “I’m never shopping on the Internet?”
I’m guessing you haven’t said that recently! This time, it will not be any different and I can’t wait to explain why on Tuesday.
Enjoy,
Jonathan
Just Like Trading Internet Stocks in 1999
At Masters in Trading, we do everything we can to level the playing field for your everyday trader. That is our mission.
We build advanced scanning tools powered by artificial intelligence, like Wall Street Wiretapper, to help option traders follow the “smart money” trades.
We invested 18 months with a team of international software developers to design Futures EDGE, a futures trading platform, to simplify our favorite futures trade before the Federal Reserve started moving rates.
We needed software that could create complex charts in seconds, for example:
This is a good example of why we need a web-based charting software to analyze changes in the yield curve.
REDDISH LINE – The difference between 2yr futures and 30 yr futures (ultra futures)
YELLOW LINE – The difference between 2yr futures and 10yr futures
PURPLE LINE – The difference between 10yr futures and 30 yr futures
Using the Chart Below – Quick Lesson: April 21, 2022
- 2-year = 2.68
- 7-year = 2.96
- 30-year =2.94
2-year vs 7-year spread = .28
7-year vs 30-year spread = -.02 (inverted)
2-year vs 30-year spread = .26
This example uses the spot price because it’s an easy way for traders to digest the information.
Below you will find two charts to help apply the lessons above. Remember, the futures market is driven by pure supply and demand; the novice makes the assumption that markets are correct but that’s not always the case.
Last tip – follow the “alpha” spread – in the first chart that spread is the difference between 2yr and 30yr = RED LINE.
Bonus Tip: Yellow + Purple = Red
REDDISH LINE – The difference between 2yr futures and 30 yr futures (ultra futures)
YELLOW LINE – The difference between 2yr futures and 10yr futures
PURPLE LINE – The difference between 10yr futures and 30 yr futures
TUT: 2yr vs 10yr alpha
TUF: 2yr vs 5yr
FIT: 5yr vs 10yr
HEARD IN COINS DISCORD
Here’s something I shared yesterday morning…
That didn’t take very long!
Join us Tuesday for a Free Presentation on Web 3.0. Come with an open mind to learn why these moves happen, and how we can potentially find the next one.
Masters in Trading Digest - Issue 58
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FINAL THOUGHTS
WHAT TO EXPECT IN THE NEXT MIT DIGEST
Don’t forget to lock in your spot for Tuesday's Web 3.0 Event. I will be working the weekend to ensure you each have a clear understanding of the opportunities ahead.
Keep your feedback coming into support@mastersintrading.com. We’re excited to share your feedback along with fantastic suggestions for upcoming issues.
Until then, trade smart and always manage your tail-risk.
Thanks for reading,
Jonathan Rose
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