April 25, 2014 - MDT - Bunds & Gilts

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.

Bund...144.65 is resistance and the upside closing pivot.

Closing over 144.65 would precipitate an initial quick 100 point rally with higher tgt's ahead.

Gilt...110.20 is support. 110.78 is mvg avg resistance.

The macro buy stops are @ 111.18. A close over this level would lead to a first tgt of 112.

The big earnings names are out of the way. Little lotto is about done.

The world Bond markets start to get interesting over the summer as investors and Funds tend to run a smaller book waiting for buying opportunities.

It will be important to see where the breaks hold over the next couple of months in the major Bond markets.

Since we exited the last of our core shorts in December, the 30 yr. has rallied almost 8 full points in one of the more difficult trades in recent memory.

We've tried it from both sides and gotten no love.

Of course the individual Bond instruments have provided good short term selling opportunities off key resistance levels, however the price separation off these levels has been short lived, with willing buyers coming in on the bigger breaks.

Keep trading the levels in front of you and be aware of the trends that can correlate.

Falling U.S. yields are generally Bearish the Dollar and positive the Metals.

 

For Medium Term Outlook click here.

?For Glossary of terms and abbreviations click here.