Treasuries Breaking Out
I've been long on Treasuries for 2 or three weeks based on the COT data represented in the Chart below. This shows the commercials are net long and decidedly so. This is a traditional signal for a turning point in trend. I hopped in early with very little technical justification, but with a low risk entry point.
What we are now seeing is a breakout of a triangle pattern on the longer term contracts (5yr, 10yr, 30yr tbonds) as represented here in the march 10yr t-note contract. This is a nice buy signal in and of itself, but also a pleasing confirmation of view.
Of interest also is that the shorter term contracts are still resolutely inside the triangle pattern. More convergence?
What we are now seeing is a breakout of a triangle pattern on the longer term contracts (5yr, 10yr, 30yr tbonds) as represented here in the march 10yr t-note contract. This is a nice buy signal in and of itself, but also a pleasing confirmation of view.
Of interest also is that the shorter term contracts are still resolutely inside the triangle pattern. More convergence?
posted by Wayne @ 1:22 AM
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