Friday’s sharp sell-off seemed to knock the bulls off of their high horse but the pullback might work in their favor as higher yields could attract buyers to the upcoming Treasury auctions. On the slate for tomorrow is $40 billion in 3-year notes and $26 billion in 1-year securities.
Volume, and trade, was anemic but this can all change in the blink of an eye. There seems to be a considerable amount of call buying activity in the VIX as well as put buying in the equity indices. Also, commentators on business news stations “felt” a bit too bullish this morning…and this could signal an intermediate-term top in the equity indices. If this is the case, bonds and notes will be a direct beneficiary.
There is very little economic data until Thursday and Friday and this could keep trading interest at a minimum. On Friday, we stated that we were waiting to see what Monday brings but today’s trade brought little clarity. Let’s see what Tuesday brings…
Sorry to be so brief and indecisive, but we don’t have much to go on and I would rather be lacking an opinion that force a foolish one.
* 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 be 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.
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Treasury Bond and Note Futures Trading Recommendations
**There is unlimited risk in trading futures.
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Carley Garner
Senior Analyst / Commodity Broker
DeCarley Trading
cgarner@DeCarleyTrading.com
1-866-790-TRADE
Local : 702-947-0701
www.DeCarleyTrading.com
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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.