A faint light is often all that is cast upon truly outstanding positioning strategies before they ready. Fundamental analysis, awareness of monetary policy developments, positioning conditions and other trend characteristics followed allow candlestick charting analysis to shine needed illumination. Martin B. McGuire
Tuesday, November 10, 2015
10 yr Auction Well Enough - On with Short Covering...
The 10yr Treasury auction results
were posted just as cash and futures were trading at the session high.The auction went well enough and should not
override earlier noted considerations (S&P
500 Index and Treasuries Both Reversing (for a time)... ) that are expected
to have bullish impact on Treasury prices today.
Stronger price action early
this afternoon might prompt some short covering going into tomorrows, cash and
fixed income futures closing holiday.While we are constructive of economic prospects and inclined to give
credit to the latest employment report as guiding the Fed toward lifting policy
rates at the December FOMC meeting, we see some oversold conditions in
Treasuries, especially toward 3’s-10’s.That condition is expected to be rectified by additional price gains
over the next couple (few) of sessions.We would be quicker to sell into strength on outsized gains on the wings
of the curve.In particular EDZ5, EDH6, Bonds
and Ultra Bonds.