FxWirePro: Bund short call review

This is yet another review of our previous call, given out in October last year to short the 10-year bund at a breakout of 162.5 with an initial target of 160 area and subsequent longer-term target of 153. The article is available here, http://www.econotimes.com/FxWirePro-10-year-bund-heads-for-a-sell-breakout-367667

In a subsequent article, we have reaffirmed our outlook and also shared our forecast that the spread between the 2-year bund and the 10-year bund would widen over time. That review is available here, http://www.econotimes.com/FxWirePro-Keep-riding-the-bund-short-call-review-397028 . In addition to that, In January, we had called on our readers to go short in 10-year bund and long the German benchmark stock index around 11560.

In our last review on 28th February, we warned our readers that our short call in bund is under threat due to election uncertainties in Europe and warned that it might break the stop loss around 168 if the Dutch election turns out in the favor right-wing candidate Geert Wilders. However, that has not happened and thankfully we maintained the stop loss. The 10-year bund reversed course after reaching as high as 166.2

The 10-year bund is currently trading at 159.3 and our patience is paying off. The next target for the bund is around 157 before it moves to the next target of 153. The patience with DAX also paid off. The benchmark stock index is currently trading at 12030, more than 450 points higher than our entry. In this article, we once again encourage our readers to have patience with the above calls.