(5-11-14) In Friday's session we saw the Uncle Vlad Friday trade begin to lessen, as Uncle Vlad made yet another peace gesture by offering to withdraw Russian troops from the Ukrainian border for the umpteenth time. We shall see in next week's trade if he backs away from it once again.
We however continue to like trading the June Long Bonds from the long side. We were buyers at 135.27 in Thursday trade, selling on our standing order at 136.07 in Friday morning session. Bonds did back off, but not by much. We would look to be buyers again on dips down to 135.20 and not be concerned about Thursday's 30 year Bond auction. We think that this will not affect the futures prices.
June Dollar -- back to 80.00 once again, as the Euro backed off on Mario Draghi's suggestions of more LTRO (Long Term Reserve Operations) yet to come. We have been consistently recommending shorting the Euro and did so throughout the week on our standing order of 1.3970, ultimately able to take 200 ticks out of that trade by the close Friday.