Teach Talk Trade Day Trading & Technical Analysis

Interest Rate Directions 12-05-07 (Wednesday): A Technical Analytical View of Futures, Eminis and Forex for online and day traders.

TYZ (December Ten Year Note): Stariway to Heaven?

Since 10/17/07, when the T8 turned positive, TYZ has trending up, yielding six points to long participants.  In commodity money, this equates to over six thousand dollars.

 We continue to preach the advantages of taking long positions on price retracements to the T8.  Going back to Halloween, there has been seven price retracements to the T8.  All of these opportunities would have been handsomely profitable through Tuesday’s close.

The CMO3, our momentum oscillator, has not smacked its upper trigger level.  Tuesday, the CMO closed at 84.31 and has plenty of room to move higher.  The CMO is such a swift judge of momentum, the indicator is deemed overbought, only at +100 (and then at times, it will stay overbought at that number).  

The direction of the T8, our exponential moving average and trend definer, continues to point up, and has been a strong trend indicator for the last 30-plus trading days. Any retracements to the T8 should be considered as buying opportunities.

Tuesday’s black candle, a spinning top,  is a sign of market indecision and not a reliable candle. Candles don’t give signals everyday and when they do, the signals don’t last forever.