Friday, September 23, 2005

Bonds and Notes

I am very bullish on the bond and 10 year note futures. Here are updated hourly charts of pit trading in the December contracts.

The bonds have dropped to the bottom of a box at 115-04. The notes have dropped to the 110-20 support level I cited in this morning's guesstimate, just ahead of the bottom of their box at 110-16.

I think both market are about to turn upward. Over the next couple of months I think the bonds will rally into the 121-123 zone and the notes to 116. After that a bear market is likely to start.

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