What’s Up, What’s Down: Treasury Note Futures Looking Toppy

Comments for Monday, November 15, 2010

Looking Ahead to Today by Reflecting Back at Friday’s Price Action

Futures and options trading is speculative in nature and involves substantial risk of loss. Futures and options trading is not suitable for all investors.


Higher closes Friday for the Euro Fx, Japanese Yen and British Pound while lower for the dollar index, Canadian Dollar, Aussie Dollar and Swiss Franc. The euro closed higher but still looks like a topping formation is in place while the franc has been a lower low and high in November heading towards a possible sell signal. While the Canadian Dollar is in an uptrend it did follow through lower (lowest low and close in 7 trading sessions) from Thursday’s reversal type action. The yen settled slightly lower still very close to a possible sell signal also. The pound closed higher and the Aussie Dollar lower (lowest low and close in 9 trading sessions) again but both of their uptrends are still intact. The dollar settled lower still a sell but a key price for now is 7861 basis the December contract. BUY SIGNALS FOR, AUSSIE DOLLAR, BRITISH POUND AND CANADIAN DOLLAR. SELL SIGNALS FOR THE EURO FX, SWISS FRANC AND DOLLAR INDEX. CALL FOR DETAILS!

EURO Chart


Higher closes Friday for the Eurodollars while lower for the notes and bonds.. The Eurodollar still has a double top while pretty much going nowhere at this time while the notes look toppy and are now close to a sell signal. The bonds, however, have been leading the way down making their worst close since early August. BUY SIGNAL FOR THE 10 YR NOTES. SELL SIGNAL FOR THE BONDS. CALL FOR DETAILS!

Treasury Note Chart

Treasury Bond Chart

Special Note for Cotton Traders: The daily price limit for Monday, November 15, will be expanded to 6 cents.

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. Email Rick at ralexander@zaner.com.

The information in this Report and the opinions expressed are subject to change without notice. Neither the information nor any opinion expressed constitutes a solicitation by Rick Alexander or the Zaner Group of the purchase or sale of any futures or options. Futures and options trading is speculative in nature and involves risks. Spread trading is not necessarily less risky than outright positions. Futures and options trading is not suitable for all investors.

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