Bonds Back Off
T-bond futures are moving lower off contract highs as
players find stocks working as well as bonds for a safe haven play. Traders have
been very skittish about where to park money recently. A six-week bear equities market
and tensions in the Middle East had made bonds a rational, conservative approach
to protecting capital in a cycle of potentially increased oil-inflation and botched corporate earnings.
Note that the September 1 high, although not a 20-day
Turtle Soup Plus One setup high, is acting as a pivot point below which December
T-bond futures
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But there are still arguments for the resumption of the uptrend in bonds. 1) a rising Dec. Federal Funds futures
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standing on the Momentum-5
List.
Cocoa is having something of a relief rally as election
results from the largest producing nation, the Ivory Coast, trickle in. Cocoa
also failed to break through triple bottoms, and the 778 level is a
line-in-the-sand of support for this contract that is trading near record
lows.
Natural gas
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New 10-Day Low Monday, is off more than 3% as the contract continues to
deteriorate. Nat gas is making good on an Off The Blocks
pattern. Also notice that down days in the contract have done very little
retracing above opening levels on days in which it has descended, making it a
good candidate for the 1090 Open Method (see Futures
Education).