It’s taken two months for the futures to eat through the overhang created by the mid-October spike. It was prompted, as you may recall, by Japan’s announcement that the BOJ would attempt what Max Keiser wryly dubbed ‘QE9’. It’s too early to predict how much more consolidation the March contract will need at the 145^04 midpoint pivot, but the so-far small breach of this resistance is a bullish sign. Assuming the rally unfolds as projected, eventually hitting 151^12, we can infer that long-term interest rates are headed beneath their 2012 lows. For now, you should position from the long side, preferably via camouflage, since the midpoint resistance has become theoretical support. If you’re uncertain about how to do this, just ask in the chat room. _______ UPDATE (5:10 p.m.): The futures pushed energetically past the 145^04 midpoint pivot, turning it into likely support. This suggests the move to 151^12 could unfold more quickly than I had initially imagined. The next promising rally target is 146^28, a Hidden Pivot resistance extrapolated from the following coordinates on the hourly chart: A=140^30 on 12/8; B=144^14 on 12/11; and C=143^11, also on 12/11.
