US TNote Future – Dec 2009

Nicole Elliott from Mizuho Corporate Bank at 10/27/09

Comment: Correction over the last three weeks has taken futures prices below what we had allowed for and turned moving averages bearish. Nevertheless we still see this move as countertrend and shall therefore look for signs of forming an interim base this week, hopefully the rising Ichimoku ‘cloud’ nudging prices up through to delivery. The contract is oversold but then momentum is bearish.

Strategy: Attempt small longs at 117.04; stop below 116.16. Add to longs on a daily close above 118.08 for 119.00 short term, then contract high at 119.29.