The bear trend will continue. Below is a sample of the daily research available as a member of the TradeMaven Inside Edge User Group with Pivots Below:
Charles Cochran posted: What a day! The sentiment changed today in the Bond markets w/the Bond trading up to 119-12 before its close at 118-24. This is signaling a cut in the Fed Funds of at least 50 bp or that the US is headed for a recession, not a soft landing. The next FOMC meeting is 12-11-07. 50 bp is expected. To buoy the market it will take more than a 50 bp cut. The structure and prices support higher prices. Buying into weakness remains the best play (For the T-Bond, sell the rallies in the ES or ER2 - JK).
Little news tomorrow. Consumer Confidence is expected at 91.5. Would guess this number will be less than forecast. The pressure to act is increasing on everyone.
F1 Comments: Both prices and volume moved higher today and with momentum. The structure and bias supports higher prices. If today’s move was it, then tomorrow should be a day where the market finds a level to trade around. Could be 118-24/28.
F2 Comments: Strong buying that entered the market in waves after 117-16 fell. The shorts had to pay up to cover their positions. If the buying exhausted itself this afternoon, I think the market will seek a level to trade/distribute around. I see 118-24± as a possible number for the market to begin to trade around. Little in the way of news this morning. Focus should be the ES’s direction. The ES is poised to take out 1400 tomorrow. If so, the Bond should see some new buying. If the buying doesn’t get started early tomorrow morning, I expect a pause day w/sellers above 119-04 and buyers against 118-10. Want to buy into early weakness at 118-13/17 and see if 119-00/04 can be taken out. If resistance holds, can trade from the short side too.
F4 Comments: The analysis was to be a buyer. Multiple opportunities to buy advantageously throughout the session off the software’s signals.Pivot, Support and Resistance for Tuesday, Nov 27:
