Downside Ahead For T Bonds - COT Strategy ShortDISCLAIMER: This is not trade advice. This is for educational purposes only to demonstrate how I am looking to participate in this market. There is significant risk involved in trading, do your own homework and due diligence.
COT Strategy
SHORT
T Bonds (ZB)
My COT strategy has me on alert for short trades in ZB if we get a confirmed bearish change of trend on the Daily timeframe.
COT Commercial Index: Sell Signal
Extreme Positioning: Commercials most short they have been in last 3 years = bearish. Small Specs most long they have been in 3 years = bearish.
OI Analysis: Extreme high in OI. Generally, extremely high OI found at market tops.
True Seasonal: Strong seasonal tendency for t bonds to go down into October
COT Small Spec Index: Sell Signal
Supplementary Indicators: Acc/Dist & POIV Sell Signals
Remember, this is not a "Short Now" idea. These indicators are not timing tools. They simply tell us that this market could have a move of some significance to the downside, which we will participate in with a confirmed Daily trend change to the downside.
Good luck & good trading.
Zb1
Fundamentally Setup Markets For This WeekI have identified the following markets are "set-up" for moves of some significance.
This video goes into the fundamental reasons for these trade ideas.
NOTE: I am not looking to go long/short these markets immediately. I will wait for a change in trend on the Daily to get involved with these markets. The tools used to identify these trade setups are not timing tools. The tools do give us an idea of how market participants with significant size and intelligence (commercials) are positioning themselves. The tools also give us an idea of sentiment, valuation, seasonality, and also an idea of what the (usually wrong) public/small traders are doing.
LONGS:
HEATING OIL (HO)
GASOLINE (RBOB)
MEXICAN PESO (6M)
SOYBEANS (ZS)
COTTON (CT)
SUGAR (SB)
SHORTS:
EURO CURRENY (6E)
JAPANESE YEN (6J)
SWISS FRANC (6S)
GOLD (GC)
30 YEAR TREASURIES (ZB)
Good Luck & Good Trading.
ZB1 weekly analysis
ZB1 continues to trend lower, with a brief respite after finding support liquidity on Tue 03 Sep '13. This occurred alongside a favorable market environment following a drop in inflation. However, after Q1, the Fed announced that interest rates would remain fixed until 2025. This has led to a continuous decline in ZB1, targeting lower lows and aiming for short-term support liquidity around 107'05. The subsequent target, if the price continues to drop, would be 103'22.
In technical analysis, we observe the market absorbing liquidity before rallying to reach the order block for a liquidity purge.
ZBZ3Shorted in Sept shorting in Oct.
Another 30 year T-bond short most effective day to open over the last 15 yrs is 10/2 missed it but opening today. Will want to hold this open until the 24th of October. Look at the December Contract as the front running contract for this trade. Futures = Calender spread back date the long side to the March contract. Options... I am torn safe bet is to sell for the premium like a credit spread. But if your willing to chance it and pay the premium a debit spread could be worth it.
"Take a wild guess what im shorting in Nov. you'll never guess it." - KewlKat
Bonds showing signs of a serious risk off scenarioThe rapid decent of Bonds from 129 was telling. Yet while most think that we have reached the bottom there are indications that this is not the case.
WE are currently here:
ZB is making a retracement, I think we can see a price rebalancing up to 120'22
The potential Highs at 121'31 will lure Buyers, yet a rejection of these levels will have serious indication that investors are in for a rough patch, yields will be higher on the bright side. 🤷🏻♂️
ZBBonds are gross and so is this trade....
Short Trade (Naked no Spread)
Entry Sept 3rd, exit Sept 15
Tick Size: 32nds of a point ($31.25/ contract) rounded up to the nearest cent per contract.
Margin Maintance:4290/3900
Contract Size:$100,000
Have fun with this one................................................
"Wait until the kids get a load of this......... and their college fund is gone."
-KewlKat
ZB Shatters Resistance Level on 15-Minute ChartHello Traders,
There is a big potential bearish opportunity in the ZB market! The 15-minute time frame just showed a break in a key support level, indicating a potential downtrend. With this technical signal, combined with current market conditions, it's possible that we may see a further decline in the ZB price. Keep an eye on this market and follow me for more updates on potential trading opportunities!"
Tell me what you think
Regards,
The Mehdi
DXY | TBONDS | ZB1 |DECRYPTERS HI people Welcome to Team DECRYPTERS
BRIEF Views with connecting DOTS:-
--We are Expecting a DUE Retracement on DXY This week At least to TARGET 1 -
--TARGET 2 will Still be on Cards -
-- ZB1! ( T BONDS YEILD )We are Also EXPECTING them to Rise up as manipulation Move ( 2nd Quarter ).
-- We Also EXPECT LONG TERMS Bonds will Also face INFLOW of MONEY.
--Also peak in rates is probably to be in , so Bonds can Rally .
T-Bond futures have completed rising wedge patternThe bear market rally in Bonds concluded with a rising wedge. The pattern would indicate a return to the lows, which is exactly what the Fed should force. The view that the Fed has turned dovish is incorrect. The Fed fully understands (or hopefully so) that a moderate or even severe recession is far better for the U.S. long-term than would be the cessation of rising rates. Generations younger than I do not understand the tremendous damage to national financial wealth that inflation can cause. I am all for a recession. Time to clean out the dead wood.
𝟭𝟬-𝘆𝗲𝗮𝗿 𝗨𝗽𝗱𝗮𝘁𝗲: $TNX Monthly. Moving higherAfter months of consolidation the move higher looks to be starting 👀
As a reminder, this broke out of a 40+ year down trend. Higher rates may be here for longer than you think ...
$TLT $ZN_F $ZB_F $TYX $DXY $ES_F $SPY $VIX $QQQ #Tech #Bonds #Rates #Trading 📈
SELL CL1!A bonus trade for you for today, on the chart you can see that the price was consolidating then cut through the channel and now it kept going down. Get in and set SL and TP at your own risk
I'm sorry I can't publish the only after giving my private clients signals after the market moves. Still you can make some profits.
Recap of my trade for todayGood afternon and good evening for european traders, for my trade today on ZB we closed in loss and it's one of normal things in trading and which a lot of people don't show and share, we didn't trade any other market for some reasons.
I'm sharing this just to let beginner traders that trading isn't always winning, somedays you make losses you recover in other days.
Today we got in after pulling wack on the resistance line and added a contract on the place I placed the 2nd arrow, The big green candle came out after the news release turned up the market to continue bullish and closed after few hours.
See you tomorrow in another forecast !
If you got any question don't hesitate to ask.