July 17, 2013 - MDT - 30 Yr. Bonds...A Teaching Moment

While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Jim Parker, will exploit money-making opportunities over a brief ten minute to three day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points.

Bonds...Today's Comments

30 yr....are still trying to break out to the upside. The first test should be 135.27-136.00.

As long as 134.20 holds the long awaited oversold rally seems to be materializing.

Let's use today's Bond comments as a teaching moment in order for you to process what you're ?reading in the technical guidance.

I use a 6 tick tolerance "STOP" in the 30 yr. Bonds for any Wiggle (Overrun) of my technical levels.

My short term bias is up looking for a rally to sell 3 Full points higher per the webinars.

Today, Short term day traders should be "buying before they sell" @ the 134.20 level with a 6 tick stop,?looking for a test of the first resistance level of 135.27-136.00.

I'm writing the road map on how an instrument gets from point A to point B.

I've just given you the high and low of the day so far. The?average?daily move in the 30 yr.?Futures is 32 ticks or 1 full point.

You're receiving daily guidance on where the featured instruments of the day show support or?resistance ?"where they start and stop".

What's next in the 30?

Closing over 135.27 (the quarterly?close) will lead to another 2 point rally.

Follow the Bonds intraday when trading the Currencies or precious metals.

Lower Interest rates in the U.S. are price positive the metals and U.S. Dollar negative.

The dollar gets hit as a short term reaction to the interest rate differentials.

There will be more market volatility when the Q&A session starts.

For Glossary of terms and abbreviations click here.

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