Treasuries fade along with nerves

A massive short squeeze in equities sucked the bid away from Treasuries. With little fresh fundamental news to work with, this was the primary driving force behind the day’s trade.
If it weren’t for the volatility, these markets would be snoozers. There is little news and light volume…and this makes our job tough. Accordingly, we’ll keep today’s newsletter light and unfortunately repetitive. We were sticking with yesterday’s comments:

We favor a sell into rallies strategy for now, but this does not mean that you should be chasing the market lower. If you want to be a bear, make sure you enter at “good” prices. We see resistance just over 129 and then again near 130 (trend line which we prefer not to see). In the meantime, our first downside objective will be just over 125. If you are trading the note, look for resistance near 123’20, and then again just over 124’00 (which we aren’t counting on). The first downside target in the note will be just over 121.

Our clients were advised to close their short August Bond 131 call position near 10 or 11 (most fills were reported at 11). This locks in a profit of $234 per contract.
July 7 2010, T-Bond
July 7 2010, Treasury Note
* Due to time constraints and our fiduciary duty to put clients first, the charts provided in this newsletter may not reflect the current session data. However, market analysis and commentary does. Charts provided by Track ‘n Trade, Gecko software.
**Seasonality is already factored into current prices, any references to such does not indicate future market action.

Treasury Bond and Note Option Trading Recommendations
**There is unlimited risk in naked option selling.
June 29 – Clients were advised to sell the August 131 Bond calls for 26 or better
July 6 – Our clients were advised to close their short August Bond 131 call position near 10 or 11 (most fills were reported at 11). This locks in a profit of $234 per contract.
Treasury Bond and Note Futures Trading Recommendations
**There is unlimited risk in trading futures.
Flat
Carley Garner
Senior Analyst / Commodity Broker
DeCarley Trading
cgarner@DeCarleyTrading.com
1-866-790-TRADE
Local : 702-947-0701
http://www.DeCarleyTrading.com
http://www.ATradersFirstBookonCommodities.com
*Due to the volatile nature of the futures markets some information and charts in this report may not be timely.
There is substantial risk of loss in trading futures and options.
Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.

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