US 30yr Treasury Futures
Yield signs are used to assign right of way and instruct drivers when they need to stop and slow down. I believe this clearly describes the way the longs yielded the right of way to the dominant short players when the 30 year contract approached the critical 144 level in early week trading activity. I have covered the bond market over the last few months and have as of now accurately laid out the price path which has been playing out. I have stated previously that roughly 143.15 would set the subset 4th wave extreme. Nothing I am seeing has altered my view. There does exits the chance that the market makes another run at the 144 level and I would suggest the purchase of put options to avoid any wipe-saws around the extreme. My first downside objective would be at+/-141.05, the lower cross zone convergence level. To me it is seems necessary for the market to at least violate the extreme set in February of this year at 141.13. The longer term price chart could be interpreted a few ways and thus project a deeper decent. The 1 x 1 extension targets +/-138. I will be delving into this market more thoroughly in Wednesday’s scheduled webinar. Please join me as I discuss and explain my analytical approach and how it applies to this and other futures markets.