Despite the roller coaster in the stock markets, the treasuries could still be pricing in a contraction in the economy. The higher the 10 Year and 30 Year Treasury prices go, the lower the rates get on the longer end of the yield curve.
With the current setup in the US 30 Year T-Bond, there is support on the Minor Pivot Stack and the Monthly Pivot Range high. This is a setup I call an Almost Super Pivot Stack, which is higher probability trade setup.
There will need to be confirmation though, of enough strength to warrant a long position.
Hence, go long the March contract of the Ten Year Treasury if the price exceeds 146'01, then place your stop loss at 144'25 and a profit target at 148'22, for a good risk reward trade.
Use the CBOT contract, symbol USH2019, with any NFA registered U.S. futures broker, both regulated by the U.S. Commodity Futures Trading Commission.
With the current setup in the US 30 Year T-Bond, there is support on the Minor Pivot Stack and the Monthly Pivot Range high. This is a setup I call an Almost Super Pivot Stack, which is higher probability trade setup.
There will need to be confirmation though, of enough strength to warrant a long position.
Hence, go long the March contract of the Ten Year Treasury if the price exceeds 146'01, then place your stop loss at 144'25 and a profit target at 148'22, for a good risk reward trade.
Use the CBOT contract, symbol USH2019, with any NFA registered U.S. futures broker, both regulated by the U.S. Commodity Futures Trading Commission.
Comment:
Bring the stop loss up to the breakeven entry point. The 6 Day Rolling Pivot Range high is at 145'31, 2 ticks below the entry point of 146'01. Normally I would trail the stop loss just underneath the 6 Day RPR low, however placing the stop loss at the breakeven point can make this a "no lose" trade.
