10y Treasury collapsed right to major supp/res. Careful here!
I was hoping for a Head and Shoulders to enter major short. Unfortunately it just ticked up to 131 on Trump victory, but immediately collapsed from the peak without virtually any pull backs! It was a tipical nice call ... but missed trade from me.
Bonds are very oversold now, and futures price reached an important key resistance. I expect some consolidation here, even a pull back would be very healthy. So if you were lucky enough to be short, time to reduce positions.
DO NOT go long! Rather try to catch a spike to open shorts again.
Weekly:
- Straight collapse from 130-131 to 126'23. -> major bullish trendline is here. Probably that's why Mr Gundlach also suggested 10y bond yield could temporarely top here.
- Heikin-Ashi signal is strong bearish, but watch out for haDelta and DMO which reached extreme lows! -> Market is very oversold, this momentum can not be as high as now. Consolidation should happen.
- EWO is more bearish, suggests a new longer term bearish trend is unfolding. -> try to find value entry points for shorts
- MACD is lower, signal line dips below zero!
Daily:
- Bearish Ichimoku and Heikin-Ashi setup
- Warning for shorts: haDelta, DMO and EWO all too deep low. They should correct from extreme low prints.
- If market pulls back towards 129-129'15, try to catch a sell signal there!
Bonds are very oversold now, and futures price reached an important key resistance. I expect some consolidation here, even a pull back would be very healthy. So if you were lucky enough to be short, time to reduce positions.
DO NOT go long! Rather try to catch a spike to open shorts again.
Weekly:
- Straight collapse from 130-131 to 126'23. -> major bullish trendline is here. Probably that's why Mr Gundlach also suggested 10y bond yield could temporarely top here.
- Heikin-Ashi signal is strong bearish, but watch out for haDelta and DMO which reached extreme lows! -> Market is very oversold, this momentum can not be as high as now. Consolidation should happen.
- EWO is more bearish, suggests a new longer term bearish trend is unfolding. -> try to find value entry points for shorts
- MACD is lower, signal line dips below zero!
Daily:
- Bearish Ichimoku and Heikin-Ashi setup
- Warning for shorts: haDelta, DMO and EWO all too deep low. They should correct from extreme low prints.
- If market pulls back towards 129-129'15, try to catch a sell signal there!
