The market traded higher post market on the 17th. Gave it up when the ES rallied OVN off the ECB injection of 500 Byn of cash into the European markets. And when the ES couldn’t hold its OVN gains rallied form 114-14 to hit 115-20 before the buying was spent. The close was strong. The market activity analysis favors higher prices w/out news. Tomorrow’s news is limited to the API’s/crude inventories. So I would imagine the focus will again be the ES’s direction. Housing Start/Permit news was supportive for Bonds and not for ES. So news environment the same. Dealers may have worked off some of their 10Y Note inventories today too. Want to buy early weakness and see if 115-22 can be taken out, if ES is sideways to lower.
F1 Comments: Market once again traded higher w/both volume and prices higher on the close. Market’s bias remains a trading range w/out obvious news.
F2 Comments: The Bond rallied after the ES gave up its OVN gains. The inverse relationship continues. The exaggerated reactions to news and range extensions will continue until the full market returns after the first of the year. The early news was supportive. The ES sold. And the Bond rallied. 1,2,3! The close was strong. The market activity analysis favors higher prices w/out news. Only news tomorrow is the API’s and that shouldn’t be much of a factor. If the ES is sideways to lower, we will stick w/our post market comments buy recommendation at 115-01/05. If 115-16/20 holds, will exit the trade.
F 4 Comments: Analysis was to buy weakness, 114-16/20. The low was 114-14. Multiple opportunities from the buy side into lunch
