I Love Virgins

Food for thought.

A couple of days ago I mentioned that ZN was approaching 8 consecutive up days. Well my good friend over at Tbondtrader dot com (who doesn't know I'm his good friend) pointed out the following:

And to update a pattern I mentioned on Friday, should the 10's make a new high today, it will be the 9th consecutive new high on a daily chart. That has happened just one other time since 2001, that being in January of 2008.
 
Late post - good for you bad for me. Even though the market essentially opened on the virgin at 119'01 I took it. Although I only took 1 lot it does not look like a good trade.

Better virgins to patentiently wait for:

Buy virgin @ 118'125 (9/30)
Sell virgin @ 119'115 (10/5)
 
Yesterday's price action was the narrowest trading range in 64 sessions. Therefore I will not use any resting orders.

Expect a breakout and if I was a gambling man, I would bet to the downside.
 
Late start again - kid/school responsibilities.

Anyhow... the bond market does not want to go down. No virgins to sell - only buys and they are far from current price action.

I am in a plan B trade long @ 119'21.

If your patient, wait to buy.

Buy virgin @ 119'015 - hey - remember this price.
 
While not my typical virgin there is a resistance point of significance - 119'29.

This is the high of the past 5, 10, 20, 40 and 60 trading sessions. I will be watching this level very closely.
 
The attached chart is a good example of the reaction I expect when price hits a virgin.

I did not post the virgin price since it was violated by the opening range, however since it was yesterdays POC (and I lost on my plan B trade from earlier) I decided to take it.

Notice how price violently and quickly reacts to realizing he has tasted a virgin (sorta).
 

Attachments

We have another virgin coming into play at 119'015 and I will be looking for a similar violent reaction.

note DBY low was 118'29 - stops should be below.
 
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