What’s Up, What’s Down: Bear Flag Formation for T-Bond Futures?

Comments for Thursday, July 30, 2009

Looking Ahead to Thursday by Reflecting Back on Wednesday’s Price Action


A higher close yesterday for the bonds, unchanged for the eurodollar and lower for the T-notes. The eurodollar is still in a strong uptrend making a new contract high close along with a DOUBLE TOP. The bonds closed higher but are in a BEAR FLAG at this time and should continue to work lower overall. The notes settled lower, on the other hand, and now have given me a sell signal. The bonds and notes have been helped lower by the indices continuing in bull markets. I am holding Sell Signals for Bonds and Notes.

10-Year T-Note Chart


Lower to sharply lower closes on Wednesday for copper, gold, silver and platinum. Copper is in a strong uptrend but still looks overbought to me. Gold settled sharply lower but is now in a strong support area. The key areas to watch basis the December contract is around 920 and 960 with the weekly chart in a BULL TRIANGLE. Silver also closed lower again keeping my sell signal in place for now but may also be forming a large potential buy signal. Silver needs to close over 14000 basis the September contract to at least erase my sell signal. Platinum settled lower again but looking to test its highs while forming a larger potential buy signal. Buy Signals for Copper, Gold and Platinum; Sell Signal for Silver.

Copper Futures Chart

See the balance of my morning comments, including the Metals, Softs, Energies and Grains, at my website. For my complete coverage, visit my commentary page at www.markethead.com.

Rick Alexander has been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (www.zaner.com) a Chicago-based futures brokerage firm. If you would like a free booklet explaining the charts mentioned above, email Rick at ralexander@zaner.com.