Wednesday, December 14, 2016 Morning Bond Comments from MB

Hello and welcome to FOMC day. I expect a quiet morning trade before the volatile afternoon. It’s difficult (for me) to anticipate the market reaction to this Fed day. I have internal reasons to suspect either a quieter than usual reaction or stronger than usual reaction. My levels today are a little more macro, in the event of a more substantial reaction.

Before noon, I like buying 149’08 risking 8 ticks to make 16 or buying 148’18 risking 8 to make 24. Or selling 150’02 risking 8 to make 16.

*The above ideas are only good pre Fed and assume flat into the meeting *

I believe the stronger levels to be relevant today, but obviously cannot anticipate what I would do having yet to see the reaction to FOMC.

151’14 (***) TGT 4 + Resist

150’29 (***) TGT 3 + Resist

150’12 (**) TGT 2 + Resistance

150’02 (**) First Higher Target + Resistance

149’22 (**) Early Pivot

149’08 (*) First Lower Target + Fair Support

148’18 (**) Lower TGT 2 + Good Support

148’07 (*) Lower TGT 3 + Fair Support

147’10 (***) TGT 4 + Pivotal
                                                                                                                 

All the best;


Michael Blythe
Futures Strategist
Hamzei Analytics, LLC