Friday, December 16, 2016 Morning Bond Comments from MB

Return to orderly Treasury future trade yesterday. The 30 year trying to build at least a temporary floor. Over the last few weeks it has been normal to see about three sessions sideways to higher leading to a 2-3 handle bounce and then sellers reinitiate. I think the path of less resistance today, is weakness during the morning at least.

I like being short right now 148’24 as volume comes in at the open with a 8 tick stop looking for the first lower target. I like buying 148’12 small, with the potential of adding at 148’02, risking 10 ticks on the average, while looking for a bounce back to 149’00, or 24-25 ticks.

I like selling 149’16 and adding at 149’24, using a 12 tick stop on the average while looking for 32 ticks.


149’24 (***) Third Target + Best Resist

149’16 (**) Second Target + Better Resist

149’08 (*) First Higher Target + Small Resist

149’00 (*) Early Pivot

148’12 (**) First Lower Target + Some Support

148’02 (***) Second Lower Target + Better Support

147’04 (***)


All the best;

Michael Blythe
Futures Strategist
Hamzei Analytics, LLC