09/18/2012 10:30am CDT
Bulls of the bond are starting this week with the market in their favor. As of this writing the last price of Dec. T-bonds is 146-09 and it seems the grand announcement of QE3 has been getting mixed reviews from traders. The optimism right now seems to have faded pretty quick considering the anticipation that led up to this announcement. That being said, we’ve been spending a considerable amount of time focusing on euro zone concerns as a catalyst of direction in these bonds. While this problem is not resolved, the Euro currency is certainly showing optimism as it continues to post gains against the US dollar. Look to revisit that at a later date. A more pressing issue is coming out of China as a US/Chinese trade rift is emerging. This is all embryonic as details are slowly coming to surface. Resolution would be a bear indicator, but for now, look for this to support bond prices. As our premiere trading partner, China sneezing here would certainly give the rest of the world a cold.
This market has slipped a bit to oversold levels with an RSI under 30. Short-term resistance is at 146-24 while support is at 144-01.
Dec '12 T-Bond Daily Chart with RSI and Moving Averages
Series 3 Licensed
After gaining a degree in economics from the University of Iowa, Bill began his career as a statistical analyst for a reputable consulting firm in Chicago. This work involved hedging in the financial and commodity markets which lead to a passion for trading. As a broker for RJO Futures, he provides risk management and market strategy for the fast paced and rapidly changing environment of futures. With an industry that provides the diversity to thrive under any economic setting, he believes cust.... Read More