To update my post on 10/4, the Bond market is currently testing long-term trendline support on the weekly chart and the market is going to need to bounce off this support at around 112.14-112.16 with conviction or the "stagflation" bears will most likely get the upperhand in this market. Today being Friday and with a host of economic data being released today, expect a significant level of volatility in the markets today. But, once the smoke clears, keep your eye on the bond market and look for signs that a rally is about to ensue. This could be a tremendous trading opportunity which could lead to an eventual rally all the way back to the 117-00 level. The alternative would be that the market closes below yesterday's low which would set the bond market up for a slide to the 110-00 level. Either way, there's an opportunity to make money.
Dale F. Doelling
Chief Market Technician
Trends In Commodities
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