Treasury bond update for Oct. 17

Long-term resistance remains at 11616. Wednesday’s low of 113-08 and July’s low of 112-21 continue to serve as are support.

The 30-year T-bond has been extremely oversold for days. Wait for

opportunities using our support and resistance. This market has been rotating up and down in hyper drive but breaking to the downside now.

Deflation and weak economic conditions support to no avail. Credit conditions remain tight due to European banks and wide credit spreads, while LIBOR rates are slowly coming down. Today’s numbers should be friendly, looking for housing numbers to fall short of expectations.

As like most markets now, volatility is at a new record breaking high and the daily

trading ranges are huge. Pick your spots and play with a known risk. My resistance was 19.5 from the actual high and my support was 2.5 from the actual low.

December 30 Year T Bond Chart

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 31 years. He has traded options on futures since their inception. For information on how to get Howard’s

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