30-Year Bond: Remember how we talked about this pivot in Sunday’s letter; I think it is still “worth referencing”…137.21 is supportive but that is also the trigger (first-weakness, if you will) to let bonds test 136.16. Taking out 136.16 will REALLY let bonds unwind. Strength will seek 139.11; there is no REAL resistance there and bull-control will project to 141.16.
10-Year Treasury Note: USE THE 2 BOLD PRICES FOR THE PIVOT 124.24 is
supportive, but the way I see it, trade below that yield favors the bears – so I would too at 124.24….perhaps they can get trade
thru 124.16 and 09 and test 124.035. Upside, faders can certainly use 125.19 – but don’t get caught short above 125.235.
5-Year Treasury Notes: There IS resistance at 119.26 – but I still view it as the springboard to test 120.035 and 120.14 (035 can
be faded). Downside REALLY starts with the yield and 118.20.
S&P500 Stock Index: Downside, 61.50 held up nicely Monday so it’s still worth a look as a fade; I’d be VERY careful fading 56.50…51.50 would be a BETTER fade….as always, we need to respect strength – but we can fade 1999.50.
SEP BONDS SEP 10s S