October 10th, 2008
Pre-order my book, "Commodity Options" today! Visit http://www.decarleytrading.com/ for details. Treasuries liquidated to free cash. The word on the street is that investors and funds are liquidating Treasuries as a means of freeing up cash flow. As a result, the bond market failed to see much of a bid despite the unimaginable turmoil unfolding on Wall Street. Another telling story regarding the dis-connect between what seem to be market fundamentals and price action; commodity prices plunged across the board to alleviate inflation pressures once again, yet Treasury futures trade didn't notice. It has been a rough week for us, so I will keep this short and sweet. The 30 year bond futures have been trading very heavy in recent days. While they have already experienced a sharp drop in price and increase in yield I am expecting a bit more weakness in the coming days in light of a potential bounce in equities and the possibility of some progress being made in the weekend G7 meeting. I see the first area of support near 116, but believe that 115'03 is a much more promising buying opportunity. The Ten year note futures reached a low of 112'20 and that seems to be enough to have fulfilled the markets digestive needs for now. However, if my assumptions are correct regarding the long bond trade in the notes may be destined for about 112'01 and become an attractive long at that level. Have a nice weekend!
Treasury Option Trading Recommendations **There is unlimited risk in naked option selling. September 10 - Sell the October 111 puts for 25 or better. It will take additional weakness to get filled. Treasury Futures Trading Recommendations **There is unlimited risk in trading futures. Flat
Carley Garner Senior Analyst / Commodity Broker DeCarley Trading 1-866-790-TRADE Local : 702-947-0701 http://www.decarleytrading.com/
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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About the authorCarley Garner – Senior Analyst, Stocks and Commodities Magazine columnist; Author of "Commodity Options" to be published in early-2009 by FT Press a division of Prentice Hall. Carley Garner is a Magna Cum Laude graduate of the University of Nevada Las Vegas, from which she earned dual bachelor’s degrees in both Finance and Accounting. Upon completion of her education, Carley jumped into the options and futures industry with both feet. Within months in the business, she had published her first article in a nationally distributed periodical. She has been featured in the likes of Stocks and Commodities, Futures, Active Trader, Option Trader, Your Trading Edge, and Pitnews Magazine. Carley is often interviewed by news services such as Reuters and Dow Jones Newswire, and has been known to participate in Radio interviews. Her E-newsletters are widely distributed and have garnered a loyal following. |
