Monday, December 5, 2016 Morning Bond Comments from MB

Weakness continuing in the fixed income futures markets overnight, hard to turn the bonds around ahead of the FOMC meeting. This week’s calendar is busy, but nothing that will be a big heavy hitter, as we start to anticipate next week’s meeting.

I like buying 149’14 with smaller size risking 8 ticks to make 16 (minimum) or shorting 150’24 with smaller size and adding at 151’02, risking 12 ticks on the average to make a full 32 tick handle.


151’20 (***)

151’02 (***) TGT 2 + Stronger Resist

150’24 (**)  Target above the pivot + Some Resist

150’11 (*) Early Pivot – sets bias

149’22 (*) First Target Below + Some Support

149’14 (**) TGT 2 + Stronger Support = worth a buy with smaller size

148’31 (***)


All the best;

Michael Blythe
Futures Strategist