Wednesday, October 14, 2009

How To Choose Target Levels For Short Dec. T-Bonds


click here to enlarge


The December T-Bonds have begun a nice progression to the downside. We had presented the case for initiating short entries in our blogs of last Tuesday and Wednesday. (You can check the older posts for verification). The chart above shows a near term Fibonacci Extension sequence where what we refer to as the targets, are approx.: 118-30 and 118-15. Short term traders could consider using these as levels to reduce or cover short positions.

We also display on the chart a series of Fibonacci Retracements which are approx.: 118-19; 117-00; 115-13. We are thinking that there is potential down to the lower retracement levels and possibly even lower eventually. But how it gets there is always the $64,000 question. We will be updating the progress as best we can along the way.

How to utilize these various levels and other tools that are involved is something we are able to discuss in greater detail with our clients. We suggest you contact us if interested in finding out more.

Hit ‘em long and straight

Jeff and Diego


Futures and options trading contain substantial risk of loss and may not be suitable for all investors.

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