U.S. bond yields are sharply higher across the board following a public market holiday on Friday, as traders continue to eye upward inflation trends following the election of Donald Trump. The yield on the benchmark 10-year Treasury note is 15 bps higher at 2.27%, while the 30-year Treasury bond yield is over 3% for the first time since January. The movement has also lit a fire under the greenback, with the U.S. dollar index up more than 1%, hitting 100 for the first time in almost a year.
In Asia, Japan +1.7% to 17672. Hong Kong -1.4% to 22222. China +0.5% to 3210. India closed.
In Europe, at midday, London +0.3%. Paris +0.2%. Frankfurt +0.2%.
Futures at 6:20, Dow +0.2%. S&P flat. Nasdaq -0.1%. Crude -1.5% to $42.78. Gold -0.1% to $1223.40.
Ten-year Treasury Yield +15 bps to 2.27%
(Source: Seeking Alpha)
Today is Cycle Day 3 (CD3)…Average 3 Day Cycle Target (2174.00) has been achieved, so the bulls will need to push price above CD2 High (2170.50) to expand range. IF this occurs, THEN potential upside measures 2192 – 2198 zone. Failure to expand higher may give bears opening to push for lower targets 2151 – 2147 zone and more.
Range Projections and Key Levels
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: December (Z) Contract
*****The levels outlined below are more general framework within a larger range…They are to be used are reference prices from which to consider trade opportunities, not hard trade levels.
Scenario 1: IF price clears and converts PH (2170.50), THEN upside expansion targets measure 2178.50 – 2184.25, with extremes upwards to 2192 – 2198 zone.
Scenario 2: IF price violates and converts 2158 handle to lower resistance, primary objective for bears is to retest PL (2148.50) forcing long selling targeting 2140.25.
Trade Strategy: Our tactical trade strategy will simply remain unaltered…We’ll be flexible to trade both long and short side from Decision Pivot Levels. Continue to focus on Bull/Bear Stackers and Premium/Discounts. As always, remaining in alignment with dominant intra-day force increases probabilities of producing winning trades.
Stay Focused…Non-Biased…Disciplined ALWAYS USE STOPS!
“Knowing is not enough, We must APPLY. Willing is not enough, We must DO.” –Bruce Lee
*****This trade strategy report is disseminated for “education only” and should not be viewed in any way as a recommendation to buy or sell futures products.”
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