10 Year Notes Slide Off FOMC Minutes

10 Year Note Futures

 

The 10 year note in the March contract is currently trading lower by 9 points at 120/06 retesting the contract lows which were hit in last week's trade reacting negative off of the Federal Reserve minutes as the yield currently stands at 2.93% looking to break 3% in my opinion which is a critical level.

I've been recommending multiple short positions over the last several months and if you took those trades the stop loss has now been lowered to 121/18 and in 3 days will be lowered once again to 121/07 as the chart structure will improve tremendously, therefore, lowering the monetary risk as the trend is getting stronger on a weekly basis.

The volatility in the 10 year note is extremely low as I think that will pick up in the weeks ahead especially if we crack the 3% level so make sure you place the proper stop loss with the next major level of support at 120/00 & if that is broken and we can head down to the 119 level rather quickly.

There is a lot of room to run to the downside as the Federal Reserve will have to unwind their tremendous massive holdings of short-term bonds which is a scary thing to think about as who will be on the other side of this landslide in my opinion.

TREND: --LOWER

CHART STRUCTURE: IMPROVING

VOLATILITY---LOW