T-Notes – Rising Three points higher

11th January 2016

… In T-Notes and T.Bond futures this year began with a renewal of demand. Demand that we expect to lead significantly higher.

The move higher last week, almost 2 points in T-Notes and 3 1/2 points in Bonds, ended a sequence of 3 down weeks. Soem allowance has to be made to the fact that those weeks including the Christmas/New Year period and so a market that was thin. Nonetheless a Bullish Rising Three pattern was formed on both T-Notes and 30 Years.

That pattern is very often confirmation of a bullish continuation and when coupled with prices comfortably above the3 13 day moving average, and hugging the top of a positively trending Keltner channel, the likelihood is for further gains.

This week has started with the market taking profits from overbought extremes. That is only to be expected. But our calls this week are positive;

T-Notes – Bullish but also Buying on a dip to 126-22. Upside targets are 128-005, 128-19 or even 129-05. The risk level is 126-075.

T.Bonds – Bullish but also Buying on a dip to 154-14. Upside targets are 157-17, 158-05 or even 158-28. The risk level is 153-14.



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