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12/16 Recap F2 Comments: The market was on hold through the FOMC announcement. The two buy zones we noted both produced two good trades each. Support held and short covering into the FOMC took the market to 139-025. The day session close was 137-12. If the buying doesn’t continue early in...

Fed Announcement Day F2 Comments: Another day of buying. The market almost hit Friday’s high at 135-27 w/a high of 135-26. The close was strong. The market analysis favors higher prices tomorrow. Some news to affect the trading. The focus will be the FOMC announcement where the Fed is...

Charles Cochran's Comments After Friday's Market Close F2 Comments: End of the week(EOW) profit taking was the feature. The OVN session was higher off the break in the ES. The market failed on the retest of the OVN high in the day session setting up the spill from profit taking. The trading...

Another Retest - Failure in the ES Yesterday I posted an example of a retest - failure trade in the ES. Here are two more trades of the same nature a day later The setup is the same regardless of the market you trade. The market trades to an extreme, pulls back, and then retests that...

Retest - Failure in the ES The attached chart containes examples of two trades that occur with regularity in the ES and the ZB. The first, and most predictive is the Retest - Failure. In this trade, the market makes an intraday high or low, then some time elapses (usually 3 to 5 bar is...

Preparing for the Market Open on 12/10 Here is an example of Charles Cochran's commentary to the TM room in preparation for the open on 12/10. 06:55 - The bond was sold off its session opening and hit yesterday’s #2 support point at 133-28, which held. The stock markets round the globe...

I use constant volume charts for trading the Bond and, yes, they do show support and resistance points. What many find helpful is seeing the volume traded on each bar, represented by the width of the bar, and the location of the mode. The mode, represented by the magenta line, shows which way...

Retests of Prior Highs/Lows Provide Excellent Trading Opportunities When the market, any market, makes a new high or low and pulls back from that level, it creates the potential for a failure. The attached ES chart from Monday, December 8th provides us with multiple examples. We like to...

NFP - Most Important News of the Month F2 Comments. The market traded higher again today and extended its range late in the session. The market is strong and is pointed higher w/some help from the news. This is likely to remain true until the economy bottoms out. Tomorrow is employment news...

Stay Patient During the Chop This morning, the Bond market was trading in a narrow range until 9:47am. At that time there was a big push down with no follow through. You don't really know if this is volume exhaustion until you see if there is continuation. If price trades out the top of...

Jobless Claims on Thursday F2 Comments: The market was bought again today. The long term buyer supported the ZB yesterday at 129-16/20. Today’s long term buying supported the ZB at 130-12/16. As long as the news remains supportive the ZB should be sideways to higher. Today’s activity...

ADP Employment on Wednesday F2 Comments: The market paused and set back looking for support after yesterday’s strong buying. Longer term buyers entered the market at 129-16/24 and the Bond was steadily higher thereafter and did close strong. The Bond is pointed higher tomorrow w/some help...

Its a typo. Should be 130.05. Sorry, I missed it.

Market Makes New Highs F2 Comments: The OVN session, first half of day session and post lunch session all traded higher. The market closed strong and is pointed higher. If the buying doesn’t get started early in the session, I would expect a consolidation day w/sellers above 130-24 and...

Examine Multiple Factors Before Making a Trading Decision The attached chart shows a set-up that occurred right after the opening on Monday December 1st. The Bond market had just pulled back 20 ticks after rising 50 ticks overnight. Here are a couple of factors that should have been...

Contract Rollover in the Bond Today Today the contract rolls from Dec to Mar. Expect a range bound day w/sellers above 128-08 and buyers below 127-12. If normal post Thanksgiving dynamics prevail, it should be a very quiet day. Trading stops at 1215 CST today in all markets. The indexes...

Getting Ready for Thanksgiving F2 Comments: A day that certainly took most by surprise. The sharp selling on Monday reversed OVN and the market hit 128-04 before the buying was over. The market tried to break 126-24 three times and it held leading to a new intraday high before the post day...

The ES Will Determine The Bond's Trading Direction F2 Comments: After a trend day the next day is most likely to see some retracement, sideways movement as the market consolidates the previous day’s news. This is what happened today. The OVN session found sellers above 128-00 and the day...

Here is the chart that goes with the prior post.

Declining Volume Can Signal The Market's Intention After a volume spike, you're left wondering if the market is going to breakout, consolidate, or revert to some prior important level. Watch the bars after the volume spike for your clue. If the bars are skinny and narrow, it indicates a...