ZN1! trade ideas
ZN - 10 Year Note 2 HourNews this coming week will impact Markets in a broad fashion.
ZN can see a larger RT to overhead POs as can ZB (30Yr) should
The FED engage in larger YCC interventions, and I believe they will
intervene heavily.
Macro Data Ahead:
MONDAY, MAY 16
8:30 am Empire state manufacturing index May
TUESDAY, MAY 17
8:30 am Retail sales April -- 0.8%
8:30 am Retail sales excluding vehicles April
9:15 am Industrial production index April
9:15 am Capacity utilization April
10 am NAHB home builders' index May
10 am Business inventories (revision) March
WEDNESDAY, MAY 18
8:30 am Building permits (SAAR) April
8:30 am Housing starts (SAAR) April
8:30 am Philadelphia Fed manufacturing index May
THURSDAY, MAY 19
8:30 am Initial jobless claims May 14
8:30 am Continuing jobless claims May 7
10 am Existing home sales (SAAR) April
FRIDAY, MAY 20
8:30 am Advance services report Q1
Bonds Benefit from Risk-On OutflowsBonds have picked up, breaking through several of our upside levels. We set a target of 119'23, and that is exactly the level we've reached. We are seeing signs of resistance here from several red triangles on the KRI. The Kovach OBV has picked up however, but it is doubtful momentum will take us much further, given the market conditions. If we are able to break out again, then we should see resistance at 120'14 and 121'00, who relative highs. From below we will have support from 119'01 and 118'04.
Long on ZN (10 Year Notes) futuresPrice is Pulling back from the low in REACTION LEG of Swing.
Price is Pressing higher into the 2nd half/Growth zone of the Reaction Leg.
Trading a quick Long into the High of the Reaction Leg.
Price is PUSHING so Buyers will be quick to exit if Price starts to eat back into their position .
Keep STOP tight and look for a 3:1 trade up into the Stops of the Sellers.
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The Bond Selloff ResumesAs anticipated the bond rout continues. We saw a brief relief rally after the FOMC, as the hikes were largely priced in. However, 119'01 provided prohibitive resistance, and ZN immediately rejected it. We found brief support at 118'04, but have broken through this level, and are currently clinging onto 118'00 by a thread. The next target is the level below at 117'19. The Kovach OBV is extremely oversold, so watch for a relief rally, which could test 119'01 again.