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Monday, 28 January 2013

update :

NAV 101.6 (3pm 28Jan13).

Covered usdjpy long at 91.023 just after the Tokyo open on Monday (sold 0.5m). To get back into the position, work the following GTC bids in usdjpy :
buy 0.5m at 90.355
buy 0.5m at 89.65

usdjpy will be protected from a deep selloff by the idea that we'll get a super-dovish BoJ governor to replace Shirakawa. People are talking of this as Japan's Volcker moment - that type of hope/hype should keep the reflation momentum going until late March/early April (Japanese year end is the exit date ?). Buy the dips then. If it just accelerates into the distance and never hits these levels then the nikkei trade should work anyway.

Other open orders :
bid 115.05 for 5 G H3 (March gilts). Just over 10bps higher than today's close, and well through the recent low : not a bad level to take some profit if we get there. We'll see.

blue June 98.125 puts (Jun13 expiry on EDM6) : bid 0.075 for another 100. Maybe someone will panic  ahead of payrolls on Friday and hit  a sleepy bid.

Elsewhere : Steadily getting taken out of the ESH3 long by the 15Feb expiry covered calls. We'll reload these in the next week or so.

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