What’s Up, What’s Down: Lower Financial Futures

Comments for Monday, March 2, 2009

Looking Ahead to Today By Reflecting back at Friday’s price action

FINANCIAL FUTURES: Remember the Price/Yield Inverse Relationship!!

A. As the price of financial futures falls, yield goes up.

B. 3 Year T-Note futures begin trading March 23, 2009


Lower closes on Friday for the eurodollar, notes and bonds. The eurodollars continue to look lower without really going anywhere as evidenced by the chart below. The bonds had their lowest low and close since early December now looking to continue much lower buy the notes managed to hold on to a critical area. SELL SIGNAL FOR EURODOLLARS.

T-Bond Chart

10-Year T-Note Chart

Later this month CME Group will begin trading 3-Year Treasury Note futures. I have information, including contract specs, posted on the HOT TOPICS section of my website (https://www.zaner.com/3.0/market_information/markets.asp)

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.