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F2 Comments: The market began to sell in the OVN session and this selling was present throughout the day session except for that brief period post the 10Y auction. The close was weak. The market is pointed lower on Monday. No news to drive Monday’s trading. The EU and UK are on holiday so...

Auction Day Strategy Auction day strategies. Normally one would expect a little selling early in the session, w/a low established in the first hour or two, followed by consolidation, then a rally into or shortly after the auction. Tease the when issued (wi) market and then make them chase the...

10 Year Auction on Thursday F2 Comments: The market opened w/an upward bias and did hit the first recommended buy at 126-26, with a day session low of 126-26. The rally took the market to 127-295 before the buying was exhausted. The close at 127-16/20 sets up tomorrow’s 10Y auction...

3 Year Auction on Wednesday F2 Comments: Today’s market was a range trade, period. No news to drive the markets and it showed. By the close the structure supported higher prices tomorrow. No news to drive tomorrow’s trading either. The focus should be the direction of the ES and the...

TIPS Auction on Tuesday F2 Comments: The market did trade higher hitting 127-235 before the buying dried up. The selling started slowly and accelerated into the close. The close was weak. No news to drive the trading on Tuesday. The market’s focus should be the direction of the ES...

Overnight Opportunities in the ES The attached chart depicts four trade opportunities from Friday that occurred before the open. The trade is, of course, a retest failure trade, but you knew that. Each trade offered at least two potential points of profit with the entry I described in earlier...

Long Term Bond Bear Reasserts Itself F2 Comments: The longer term secular bear market reasserted itself today after an as expected Unemployment report. The market traded a one point range until the ES began to recover in D period. The move lower started in D period in the financials and...

News Day Trade on Friday F2 Comments: The market found sellers in the OVN session when yesterday’s closing strength failed to bring in new buying OVN. The previous day’s strength did yield a couple of early buys. The G-20 announcement of another 1T in global stimulus broke the financials...

Possible Pause Before NFP on Friday F2 Comments: Another day of buying with a strong close. The structure, news and price activity all support higher prices. See two scenarios for tomorrow: the first, a pause day while the market awaits the outcome of the G-20 meeting and Friday’s NFP...

End Of Quarter F2 Comments: The market was set to trade higher off the EOQ window dressing and early supportive news. The buying was present into the close. The market is pointed higher tomorrow w/some help from the news. If the buying doesn’t start early, then selling becomes more...

More Boring Profitable Retest Failure Trades from 3/31 The trade parameters are the same: 1. A double top/bottom is set with a 2 tick tolerance 2. White space between the base bar and the retest bar 3. At least three bars between retests 4. Entry bar must close within 2 ticks of...

End of 1st Quarter Today F2 Comments: Tomorrow Tuesday) is the end of the 1st Qtr. 123-035 was the close of the Note at the end of the 4th Qtr. Could be the story for tomorrow’s market/close. Some news to drive tomorrow’s trading: Consumer Confidence is expected at 27.0; Case Shiller...

RTF's on Monday 3/30 The three trades indicated by the red arrows on the attached chart worked for a scratch, 4 points and 2 points respectively. I continue to post charts with RTF's because they are the most consistent, recurring trades I see in the ES.

Option Expiration Caps the Rally F2 Comments: The market did trade higher today as per the market activity analysis. Option expiration capped the rally as the call sellers defended their positions above 129-00. Call and put open interest favored a close between 127 and 129 and that is what...

Rolextrader, I'm saying that you get more exact fills with virtually no slippage in the ZN because there are typically hundreds of contracts resting at every price. If you happen to be a person who trades size (20 lots or larger), you will appreciate this attribute of the ZN. Either contract...

Market Rallies on 7 Year Auction F2 Comments: Today’s 7Y auction controlled the activity. When the OVN session’s low held, the auction dynamics took over and rallied the market into the Bond’s close. The close was strong. The market activity analysis favors a retest of 128-24 and/or...

Charles Cochran's Comments for Friday 3/26 F2 Comments: The market traded sideways w/a lower bias as per the analysis. Auctions tend to move markets sideways and this was the case today. By the close the distribution favored higher prices w/out new news. Think the market will trade both...

ZN vs. ZB The ZN is approximately 55% as volatile as the ZB. The volume on the ZN is approximately 3 to 4 times that of the ZB making for virtually no slippage on fills. Setback trades work better in the ZB because of the volatility, but retrace failure trades work better in the ZN...

Sell Into Early Strength[/b] F2 Comments: It is almost like it is getting too easy. Almost everyday our mantra is “sell into early strength”. Been working like a charm too. Once again the analysis was to sell early strength, 128-19/23. OVN session high was 128-23. Sell band was...

Strength in ES Breaks the Bond On Monday F2 Comments: The analysis of Friday’s structure and market activity strongly suggested lower prices for today’s market. Our sale was conditioned on an ES that was sideways to higher. It took awhile for the ES to rally, but rally it finally did...