By the Taylor Technique (the basis for my Swing Trader’s Insight advisory, see more here), today was the Buy day for T Bond futures. Actually Friday was a Buy day, but Friday’s weak structure (close lower than the open, below the previous session low) kept the Buy day signal in force today.
The daily chart for June T Bond futures is below. Overnight they traded down to Friday’s low at 116-22. That didn’t give the ‘excess’ low of an ideal TT Buy day, but it definitely showed the bullish bias of a Buy day.
click to enlarge
If you bought overnight, this trade showed a decent profit by mid morning. It hit the 117-10 Fibonacci retracement resistance by 6:45 AM, and traded to Friday’s high at 117-15 by 7:30. It couldn’t trade -above Friday’s high and backed off. If that wasn’t enough to get you to take profits, about an hour later they made a daily double top at 117-15.
click to enlarge
By the TT cycle tomorrow is a Sell day for T Bond futures. Actually, as Friday and today had exactly the same range I’ll view tomorrow as a breakout day for the bonds, and trade accordingly. If tomorrow were a regular Sell day, tomorrow’s objective for the Sell day would be today’s high at 117-15.
The Taylor Technique is a practical, useful tool for trading in futures. I find that being flexible about exits can lower the risk profile without sacrificing too much return.
This is a sample of the analysis from my Swing Trader’s Insight advisory service. For information on STI, and to sign up for a free two week trial, visit here.
The information contained here includes information from sources believed to be reliable and accurate, but no guarantee is made as to accuracy, nor do they purport to be complete. Opinions are subject to change without notice. Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
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