The most important chart ahead of tomorrow Tomorrow we will have a lot of information and data given to the market. Everything from the QRA (quarterly refunding announcement) from the Treasury to know what the allocation (or mix) of supply will be for the market between bills/notes/bonds. Then we will have private jobs data from the ADP. Following that we will have the ECI (employment Cost Index), then a few hours later we will hear from the Fed Chair, Jerome Powell and the FOMC.
In the meantime, the 10yr notes market looks poised to rally in a "bull flag pattern" setup which does suggest a continuation of note market strength and ultimately US Dollar weakness. However, a break of the 38% retracement at 110'09' would suggest otherwise and in that case we could see the US Dollar really take off to the upside as the bond market nullifies the pattern and looks to correct further below 109'00.
ZN1! trade ideas
10Y Treasury Bond Is Looking For A Bigger RecoveryTreasury bond - 10Y US Notes came down a lot in the last two years but this cycle can now come to an end as we can see five waves down into 2023 lows ona weekly time frame. In fact, we also see five subwaves completed within wave (5) on a daily chart after prices recovered and break above the trendline resistance. The move is strong, thus we think that more upside can be coming within a three-wave (A)-(B)-(C) rally, where first leg (A) can be still in progress or maybe already completed as an impulse. Support on subwave 4 or wave (B) dips are at 110-111.
ZN1! / $TLT Short Idea UpdateUpdating Jan 2 post after jobless claims
Surprised we saw such a big move after claims
Highlights extreme market positioning for cuts this year
Higher crude supports higher rates move. position hedges middle east volatility
NFP tmrw is wildcard
Remember NFP is wildly volatile
Prefer buying Feb puts as defined risk trade
ZN currently at technical support and rates at big 4% resistance
Look to fade bounce
5ema serving as resistance on various time frames
Bond Bears Beware (3+1 reasons)This is a brief video sharing my thoughts why I think T-Notes have bottomed out.
It is not a full, detailed analysis, but rather a quick video sharing thoughts on 3 + 1 patterns.
Two of these patterns are on the MACD-v , one seasonal and as a "bonus" the historical reaction to changes of Fed Policy.
T-note ZN1! only billy has the power and glory for god's sake!billy-billy-no, soros, rothschild, blackrock, rockie and the creepy ghost of kissinger are pumping money, printing as fools and ripping the market off. Therefore we see the t-note really overbought.
Just do the same like these evils and sell puts on ZN1! january contract at 110,25 strike price and fvckthem. Collect the premium.
ZN1! only billy has the power and glory for god's sake!billybillyno, soros, rothschild, rockie-feller, larry pink and the rest of pedoyews elites that run the world are pumping the t-note as they print money as fools to later dump it. Do not be silly and buy puts options at 108,50 or sell calls at 110,50 on JAN 2024 contract and fvckthem
T-Notes rally Looking for T-Notes to continue the rally in coming months:
It looks like it ended a 5 waves pattern
There is a divergence on the MACD between wave 3 and 5
Their is the 10 year S2 at 105 and an untested demand zone
Historical number of shorts on the T-Notes ( COT: Reportable Non-Commercial Net Positions (Futures Only))
Lower inflation and potential economic effects of such a rapid increase in rates should make rates go down
December is usually the worst month of the year for treasuries but 2024 should be a good year for bonds.
The Power Of Option Analysis. Sentiment on 10-year bonds.Another reason to get involved in options research analysis. Yesterday and last Friday, 10-year bonds options contracts on the CME were found which have a predictive component in the form of sharp price movement in any direction. Today's 10-Year Bonds chart has fully realized this sentiment, allowing the most informed participants to capitalize well. And did you make money on today's Bond rally?
Bonds - Bullish Quarterly Bias I am seeing a bullish '22 model on Bonds with a clear Original consolidation. I am bullish on bonds for the rest of the quarter. As a result, I am leaning bullish on all assets that directly correlate with bonds & bearish on assets that indirectly correlate with bonds including yields.
Has the bond market bottomed?The big question everyone is asking today (and yesterday) is "Is the bottom in the bond market?"
So far, following the FOMC decision yesterday, the market seems to think so. And following the jobs report (Non Farm Payroll number) tomorrow, we will probably have a good idea if the bounce is sustainable, or we are about ready to resume the downtrend, and yields back towards 5%. Technically, we are reaching the channel that has kept the 10yr pressured since spring of 2023. However, a break of the 50dma and channel resistance at 108'02 may be the trigger that actually squeezes the market much higher, sending yields falling at a rapid rate. We'd expect that on a "weak" jobs report and the US Dollar to fall precipitously from here. However, we must keep in mind that the headline number has come in higher than expected 7 of the last 10 reports in 2023. So, a weak NFP report is not a given!