ZB1! trade ideas
30 Year T Bond at supportThree weeks ago T-Bond saw this level. Likely to penetrate. Next level is a revisit to 140 not seen since Nov 2014. Note the high level excess supply signals in late Dec.
TLT / ZB - Sling Shot Entry. Make Sure no squeezes are forming in Intraday chart setup.
100% Symmetry Support / Sling Shot Entry. Watch for a TLT / ZB Reversal. Again Not betting it will make a new high, if it does, Thats BONUS.
Long 30-Y Treasuries Futures $ZB on Pull BackIn a deflationary environment, yields will continue to fall and bond prices will rise. In many countries, we are seeing structural deflationary pressures that can't seemed to be fixed by adding money supply.
This trade setup looks to buy a pull-back to the P-Pivot level, which also coincides with the up-trending blue slope
As of 13 Jan 2015, price has broken through 148'00 to form the beginnings of an AB=CD pattern.
Using the AB=CD pattern to project key levels, the target set for Profit Target One is at the .618 extension level, right before the All Time High dating back to years ago.
Profit Target Two is set at the full AB=CD extension.
Stop Loss is set to below point B of the AB=CD extension and below the previous weekly low.
Entry: 149'05
Stop loss: 147'05
Profit Target One: 152'25
Profit Target Two: 160'17
Come back....No entry for now. Bonds gapped down and didn't even get close to our entry area. We will watch for a bounce...below the zone we will continue to look short.
Yields vs ZBsTime to short yields. Trajectory on reduction of LSAPs is what's important now, Not the fact that they're reducting, that's priced in and happenin. It's going to be data dependent, which means we're in for another round of this psychological waterboarding of strong highly opinionated market views. This combined with big positioning to the downside for bonds, i.e higher yields. Makes it a low risk contrarian entry.
Bonds breakout ahead of debt ceiling vote30-Year T-Bonds have broken out of their descending trading range. The measured move from this breakout targets the 137' region. Old resistance is new support at 132'-133' where both trend line and 50 SMA support resides.
ZB30 year bonds as well as 10 year bonds have been under pressure. It's overshot, and about to abate imo. If you look at the ZB/ZN ratio, you can see, (much better) the very well defined support bounce.
What will we expect in second half of 2013?Inflation! All Around the Globe..
US Dollar Decline as China Becomes Importer in 2013-2016
Bloomberg - China will curb its reliance on exports sooner than the U.S. can cut its budget and external deficits, removing a support from the dollar that will unsettle currency markets, Morgan Stanley's Stephen Roach said. "In the next three or five years China will move aggressively to increase its private consumption and reduce its surplus saving," Roach, who is non-executive chairman of Morgan Stanley Asia Ltd., said in an interview in Oslo yesterday. China may post a trade deficit as early as this quarter as imports outpace sales abroad, the government said last month. The country's reliance on trade to fuel economic growth close to 10 percent is now fading as its consumers grow wealthier, removing a key incentive for China to support the dollar. At the same time, the world's largest economy estimates its budget deficit will swell to a record $1.5 trillion this year, as President Barack Obama channels stimulus to revive growth.
"If we don't move to address our deficit before China addresses its surplus then we are going to be facing some pretty significant external funding constraints," Roach said. "That would lead to a significant downward pressure on the dollar and/or higher long-term U.S. interest rates."
China aims to reduce its trade surplus to less than 4 percent of gross domestic product in three to five years, central bank Deputy Governor Yi Gang said last year. Roach said the risk that China will cut its reliance on exports before the U.S. weans itself off external funding is greater than 30 percent.
nextbigfuture.com
Wall Street Journal’s Real Time Economics blog calls “an inflation inferno.”
seekingalpha.com
In a good economy, gradual inflation is considered a good thing, but in tougher economic times, too much inflation is a serious problem. Simply put, inflation occurs when a currency has reduced buying power for goods and services compared to the past. How is inflation measured? What is its impact on the average person? Salman Khan of the Khan Academy explains in a simplified example.
www.cnbc.com
Inflation risk Inflation causes tomorrow’s dollar to be worth less than today’s; in other words, it reduces the purchasing power of a bond investor’s future interest payments and principal, collectively known as “cash flows.” Inflation also leads to higher interest rates, which in turn leads to lower bond prices. Inflation-indexed securities such as Treasury Inflation Protection Securities (TIPS) are structured to remove inflation risk.
www.investinginbonds.com
TIPS ETF Hits All-Time High as Inflation Trumps Treasury Bonds
www.etftrends.com
Signs indicate Treasuries could be a bubble about to burst
"Treasuries were for a long time an alternative to what was bubbling," Kendall says. "Now it's just an overbought market, primed for reversal."
usatoday30.usatoday.com
Wilber Ross... "Long Term Bond Bubble Getting Ready To Burst"
www.cnbc.com
CBO Says Treasury Can Fund Government. to Early-March
The U.S. Treasury will likely be able to continue funding government activities only as late as early March before requiring an increase in the federal debt limit -- nonpartisan Congressional Budget Office.
www.4-traders.com
Gold and Silver possible falling wedge through Feb. - Mar. of 2013
thepatternsite.com
