One of my favorite trading pattern resembles that of an emerging submarine periscope, usually after a long period of consolidation on a weekly (and longer) chart.- TY futures weekly continuation chart has potential to form such a pattern. Waiting now to see if we get a strong impulsive push above 119-29 to do the trick.
- Of course, other possibility is that this turns out to be top of a trading range and I end up looking really silly to be even talking about this now.
- However, daily yield chart looks toppish. Last 4 days' price action looks like a bear flag (and also SHS top) which could potentially take it below the technically important yield support zone between 3.26%-3.30%.
- If the bear flag on the US10YY daily chart performs (bringing US10YY towards 3.20%), then most certainly the periscope will form on the weekly TY chart.
- Need impulsive push to validate the periscope. A damp squib of a rally would not cut it. Clearly a trigger event needed here. Stocks perhaps?
- Game plan : Add on to long held +TYZ9 if periscope forms.
2 comments:
I'm watching the bond market as well. We may not get any push upward tomorrow with no economic news coming out tomorrow. But we'll see.
BH
The daily bear flag on US10YY should not take too long to form. Otherwise, its just more grinding sideways action and back to the drawing board.
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