Bonds are approaching this huge support zone!The 30 year bond is approaching a huge support zone! Constructive if this zone holds! Bearish if it breaks down below this zone.
ZB1! trade ideas
What is happening in interest rates market? ExplainedI got a few questions about interest rates this week. Well, I don’t understand why people are waiting for some disaster in this market. Commercials are selling 10-year Nonets and buying 30 year Bonds. That means smart money expects that short-term rates are going to go down and long-term rates are going to stay where they are. This is a bullish yield curve development and a normal market. However, it doesn’t mean a huge rally is about to start in Bond market. It will take time. Short-term rally? – Well, possibly if on Monday we get above Friday’s high. But be realistic about your potential targets.
Looks imminently bearishBut my gut feeling is going up. For bear case, I would like to see hard rejection on cloudy bottom which did not happen.
Still no long until further signal. Keep an eye for now.
Bond Pong. Like Beer Pong With Less BloatingMost retail futures traders hang out in the stock indices, metals, or energy primarily. This makes sense as those markets move on a daily basis. But tonight, we'd like to make a case for looking at interest rates products, specifically the 30Y bond. As volatility picks up, the bonds haven't really kept pace and instead have stayed within defined ranges, making for a good case for some back-and-forth action.
For the past several weeks, a well defined channel in the 30Y Bond (ZBZ2020) has formed with a one point range between 176 and 177.
We're buyers at the bottom of the channel at 176 and sellers and the top at 177. It's a game of pong. What's constructive about this chart is that we have bumpers on either side of the channel in the form of a bid zone at 175 and an offer zone at 178. So we can scalp the channel and then look to add on a break or stop and wait for the level.
Our current position (CurPos) is flat as price is in the middle of the channel. We'll update this idea on our next entry.
Note: the ZN chart (10Y Note) looks similar and is 1/2 the size roughly on a per-tick-basis.
