Wednesday, December 7, 2016 Morning Bond Comments from MB
Small rally in bond market overnight, but a persistent market trying to lift a bid, another two handles higher and I think it will be a gift for shorts.
As for today, I like shorting the 151’20 price with smaller size and adding at 151’26, risking 16 ticks on the ave to make 32 ticks minimum. As an alternative, I could see having a smaller position buying 150’15 and adding small at 150’04, using a 12 tick stop on the ave to make 24-32 ticks. However, I like the sell much better.
151’26 (***) TGT 3 + Strong Resist Zone Begins
151’20 (**) Higher TGT 2 + Better Resist
151’08 (*) First Higher Target + Some Resist
150’31 (*) Early Pivot
150’15 (*) First Lower Target + Some Support
150’04 (**) Lower TGT 2 + Some Support
All the best;
Michael Blythe
Futures Strategist
Hamzei Analytics, LLC
