I may be sitting on my hands this December as the year comes to a close. I am not seeing a very healthy trend in the 30 Year Bond/ZB market and I don’t expect a direction to be chosen soon.

The 30 Year Bond is facing some price rejection around the 156’00 area. Pretty strong resistance area on my charts.

 

The ADX on the daily chart is also indicating that the market is not really in a strong trend although the Bears are in control.

 

 

If I were to trade in these final weeks of the year, I would look to the 10 year note for some sort of foresight on what a possible direction might be.

 

The ZN 10 Year Note is hitting resistance on the daily chart at the turning/fast line of the Ichimoku and the ADX is showing a slight trend toward the Bearish side.

 

The probability of the ZB 30 Year Bond moving south is slightly higher for me in my analysis. But if she can break through and close above 156’00 there may be an opportunity to start taking long trades up to the 158’00 area.

 

Consider the end of year trading, the markets act a bit oddly during this time. Please as always, use caution and risk management before taking a trade.

 

Good Luck Team,

 

Hope it Helps,

William