T-Bonds Meet Near Term Trade Focus Target

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

This is a follow up to last week’s US T-Bond section from our weekly Trade Focus. It appears that there is some reason to expect a retracement rally of some amount. We had highlighted what we believed to be an intermediate term target at the 114-28 level as you will see below. Bigger picture, though, still suggests to us that lower prices are coming down the pike.

Retracement levels are currently in the area of the following price levels: 116-15; 117-00; 117-17. For our purposes we would be interested in what the pattern looked like if the 117-00 level is attained and assess if at that time we believe it appropriate to suggest new or additional short entries.

New lows below the 114-26 lows of the past two sessions prior to a retracement to the above mentioned levels would likely change the retracement parameters and suggested entry approaches.

Here is the T-Bond section from Trade Focus written December 23 and sent to our email list December 24.

T-Bonds (Mar.) – There remains an active suggested short entry position from the intraday penetration of 119-21 back on December 4. We believe stop protection can be lowered to intraday penetration of 117-24. We can identify a near term target at approx. 114-28 and suggest that some may want to at least reduce the size of their position at this price level. Lower prices are still a viable potential but capital preservation can be a key element in long term success. We will need to allow additional pattern development before updating retracement levels.


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Good Trading to all

Jeff

CB&S