Good morning all,
Since I'm going to limit my coverage of the Stock index futures until further notice I'd like to talk about some other markets that I trade regularly. Interest rate futures (Bonds, notes, Eurodollars) have been a staple of my portfolio for over 20 years. When I first started trading these markets they were pretty much the only thing that I traded. I focused all of my studies regarding Technical Analysis on the moves in Interest rates. They are just as appealing today as they were back in the 80's. I've long been bullish on these prices as I have continued to evaluate the health (or lack thereof) of the economy. I know, I know! Everyone on CNBC says the economy is fine! Well, what the hell do they know? You simply cannot have yields at the levels that we are seeing today and have a robust economy. It simply does not happen. So I will continue to reiterate my forecast (God, I hate that word!) on the 5-year note. Before the trend in rates ends we will see the 5-year note yielding 3%. The yield range on the 5-year note for the week has been roughly 3.95% to 4.02%. Prices in the markets are currently dealing with some overhead resistance and it may take some time for them to break out to the upside but I have no doubt that it's just matter of time. So, you may want to wait for a pullback, much like I've been advocating in the Gold market for quite some time. Gold and Bonds. Buy 'em while you still can because they won't be at these levels for long.
Dale F. Doelling
President and Chief Market Technician
Trends In Commodities
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