Treasury bond update for Oct. 16

Breakdown below long term uptrend line is bearish. Long-term resistance as at 11616. Wednesday’s low of 113-08 and July’s low of 112-21 are support.

December 30 Year T Bond Chart

December 30-Year T-bonds have been extremely oversold for days. Wait for opportunities using the numbers (below). This market has been rotating up and down in hyper drive but breaking to the downside recently.

Deflation and weak economic conditions support to no avail. Credit conditions remain tight due to European banks and wide credit spreads. Today’s numbers should be friendly, looking for CPI and housing numbers to fall short of expectations. As like most markets now, volatility is at a record breaking high and the daily trading ranges are huge. Pick your spots and play with a known risk.

Major Resistance 116-20

Minor resistance 115-17

Pivot 114-12.5

Minor support 113-08

Major support 112-20.5

Howard Tyllas is registered with the CFTC as a floor broker and CTA. He’s a member of NFA and a veteran trader of 33 years. He has traded options on futures since their inception. For information on how to get Howard’s analysis and support and resistance numbers on additional markets go to www.howardtyllas.com.

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