Tuesday, January 3, 2016 Morning Bond Comments from MB

No surprise that the Treasury market resumes it’s down course as the dollar and equities rally, and gold trades in the red. The week offers a decent calendar, and the modest rally in bonds over the last few sessions maybe enough to give it fuel to new lows.
 
My bias is clear to sell rallies at this point. I like selling 149’24, risking 8 ticks to make 32 ticks, or selling 150’10 risking 8 ticks to make 32. If I cannot grab a rally to sell, I will attempt to sell through the 149’02 level, depending on how the chart sets up. I think its reasonable to target a full handle on any short at this point. Bears should have enough for that, and if not, my bias maybe wrong.
 
151’14 (***)
 
150’24 (**) Resistance + Third Higher Target
 
150’10 (**) Resistance + Second Higher Target
 
149’24 (*) Resistance + First Higher Target
 
149’10 (*) Last Print
 
149’02 (**) Overnight Low, the 149’00 level was pivotal for bulls to hold. I don’t think they      can/will on the retest + First Lower Target + Some Support
 
148’16 (**) Second Lower Target + Some Support
 
148’02 (***) Third Lower Target + Support
 
All the best;

Michael Blythe
Futures Strategist
Hamzei Analytics, LLC