April 20th, 2010
See us at the LA Trader's Expo Friday, June 11 2010: http://clicks.aweber.com/y/ct/?l=6K1iZ&m=1fi6RVW5xKigzm&b=w9QfMXTrEETCKza2Q3Nclg
Yield curve flattens in light action
Treasuries were mixed on Tuesday with the long end of the curve spending most of the day in green territory and the short end decisively red. Had the Bank of Canada not begin with it's dovish talk about consecutive rate hikes into year end, we might have seen a more pronounced bullish bias.
The Treasury will announced the next round of note issues on Thursday. Specifically, the 2, 5 and 7 year notes will be offered along with a batch of 5 year TIPS. Most analyst are looking for record size, and this could rekindle supply concerns.
We are a little uncertain as to the disconnect between notes and bonds. Our technical target/resistance area in the note worked like a charm but the T-bond rally lagged. The Bond chart suggests that there could be another surge to the rally but an apparent reversal in the note is suspect. For now, we are going to have to assume that the bond is the leader and that the outlook for moderately higher pricing is possible. That said, we like the short side of this market. Look for a good place to be a seller. There is a strong band of resistance from the mid 117's to 118.
Don't forget about our webinar with SFO Magazine on April 29th, you can sign up for free on our website (below).
* 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
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.
