Pivot is Directional

Comments:  US 30-Year Bond: Bonds are poised for a 3 ½ point move  – and with the FOMC meeting starting on the 30^th and all the important reports coming out this week it’s pretty interesting that the move is setting up. The triggers for it are 136.05 and 133.23. As for trade inside there, I’d put more emphasis on 134.07 and favor the buyside. 10-Year Treasury Notes: There are a handful of key prices to watch here; here’s how I see it: the bulls need 127.235 – that will allow them to take a run at 128.21 and 129.255. The bears need to control 125.21 which allows them to go after 124.18. The yield and 126.00 are virtually bookends (equally important); 127.16 should be good for a first-touch fade. 5-Year Treasury Note: The pivot is directional…the bulls need 121.255 (which allows a move to 122.27); the bears will do better below 120.245 (to test 119.255 which is a first-touch fade).  S&P500 Stock Index:  There are good targets up at 1728.50 and higher – and each target could also be the top – so it makes a lot of sense to favor the bulls in this market. Trade below 1670 will bring some weakness; and continued weakness at 1653 would be quite bearish.