Posted on 2/6/2018 9:27 AM by Dave Toth
MAR 10-Yr T-NOTES
Against the backdrop of an arguable secular bear trend in T-note prices, traders are advised to first approach yesterday’s admittedly extensive 2-figure recovery as a knee-jerk and corrective reaction to the recent equity market spasm. We cannot ignore yesterday’s 120.18 resulting low as one of developing importance, but as we’ll show below, yesterday’s 1/32nd poke above 24-Jan’s 122.175 high and our short-term risk parameter is questionable as evidence to conclude yesterday’s 120.18 low as one of a more significant scale. Per such and from an intra-day perspective we believe overnight’s 122.19 high serves as a new short-term risk parameter from which shorter-term traders can rebase and manage the risk of a still-advised bearish policy.