Search results

Bond Closes Higher Again F2 Comments: The market opened better and held its gains through lunch. The early news was again supportive. The market activity analysis also favored higher prices. When the ES rejected 865/67 the buying increased in the Bond and it traded higher to close strong. The...

Net foreign purchases should be the focus over PPI this morning. We also have the added issue of Paulson and Bernanke testifying in from of Barney Frank and Chris Dodd, et al. That should be interesting.

Bernard, Charles is rebuilding his charts this morning. I'll get you an answer as soon as I can. This particular daily calendar usually provides a good market focus. http://www.nasdaq.com/asp/EconodayFrame.asp

Inverse Relationship Between ES and ZB Continues F2 Comments: The analysis called for higher prices today. Economic weakness spilling over into the ES was the basis of this projection. The early news was close to expectations except for Industrial Production, which was better than forecast...

Volatility Up - Conviction Down F2 Comments: One day down a couple of points. Next day up 2.5 points. Volatility is up and conviction of direction is down. This has been the case for the last 6 weeks and is likely to remain such until the recession takes hold and the financial system...

Retail Sales and Michigan Sentiment on Friday F2 Comments: The market did try to trade higher and did hit 118-20 for the third time. Resistance held and the market reversed and began to sell. The selling accelerated after the 30Y auction and further increased when the ES rallied back to 910...

Market Break Related to 10-Year Auction F2 Comments: It was a pause day punctuated by a 10Y Note auction. When the retest of 118-22 held, the market transitioned into a range trade driven by technicals for support/resistance and the ES for the direction. The sharp break from 118-14/16 to...

Follow-Up to a Trend Day F2 Comments: Another day of strong buying. Only thing missing was volume. The market is experiencing large swings almost every other day on low volume coupled w/strong buying or selling. If all the players were in the market, these large swings would be dampened. No...

Conditions Favor a Trading Range for Monday F2 Comments: Great news this morning in the Unemployment numbers. Bond hit 117-28 off of the headlines and promptly reversed when the ES didn’t break. The ES was sideways and the Bond sold hitting 115-22 before the selling was exhausted. It was a...

Avoid the Chop - Identify Consolidation Early On Friday, November 7th, there was a nice sell-off after the release of the NFP number. The typical way to trade an important news event is to wait for the first setback and re-enter in the direction of the newly established trend. The setback...

Friday Is The Biggest Scheduled News Day Of The Month F2 Comments: Had guessed a trading range day for today. Sell off got a little deeper than thought, but not really a surprise given the volatility we are currently experiencing. At the day’s end were looking at a double...

Post Election Prep F2 Comments: The market traded higher off its opening and continued to trade as the day progressed. The market paused at 114-00 +/- for an hour and then exploded when 114-12 came out. There was no news to tie to the breakout buying. Short covering? New buying? Will find out...

Market Slow Pre-Election F2 Comments: A pretty quiet day in the Bond market when all was said and done. The Bond found buyers below 113-00 and a sellers above 113-16. The ES was sideways/lower, but didn’t break. The Bond closed in a P pattern, pointed higher. If the ES breaks, the Bond...

The Trade Remains To Sell Into Strength F2 Comments: Market rallied early and did get to the best structural sell on the charts at 115-055/095. The high at 115-08, a market number, was predictable. It was all selling thereafter and the market closed weak. Open Interest (OI) increased in both...

Prepare For The 5 Year Bond Auction F2 Comments: Market traded both ways today. Biggest trade came from the short that set up above 117-00/#3 R. The setup was a retest of 117-035. The market was quiet up until the FOMC cut rates by the expected 50 bp’s. When it became clear that the ES was...

FOMC This Afternoon F2 Comments: The market sold OVN, rallied into lunch and broke and took out the OVN lows after lunch. Try making longer term calls on the direction of the market and where you want to engage the market from the short side. Aint easy, to say the least. Today’s weak close...

FOMC Week F2 Comments: The Bond was higher when the ES was being sold and lower, when buyers took the ES to 890+. The late break in the ES once again brought buyers into the Bond. The focus remains the ES’s direction. FOMC week in the Bond. Tomorrow’s news Consumer Credit doesn’t...

Follow The Volume For Trading Success On the attached chart I've marked off the high and low volume areas to illustrate how price is attracted to these areas. But the most telling area is that which occurred from 11:37 to 11:44am. As you will note, price traded through the low volume area...

Sell Monday if ES is Sideways to Higher F2 Comments: The market sold after a strong rally from weakness in the world’s stock markets. When the selling in the ES stopped, it began in the ZB and was not over until 117-00 was hit. The analysis favors lower prices w/out news. Little in the way...

Strong Close on Wednesday - Buy Early Weakness Thursday F2 Comments: The buying in the ZB stalled through the H period as Tuesday’s strong buying was digested by the market. When the last attempt to break the market stopped at 115-07 failed, short covering and new buying entered the market...