USU15 – September T-Bonds (Last:148^27)

Bond target helped subscribersThe 150^07 correction target I’ve been drum-rolling for weeks in the June contract caught the exact low of yesterday’s powerful rebound. Because the target, a Hidden Pivot, has been a while in coming, we will treat the rally as the potential resumption of the bull market begun almost exactly a year ago. The futures are not yet out of the woods, but we’ve taken steps to avoid pain if they should relapse to new lows.  Specifically, based on reports from subscribers who used my target to get long, I am tracking two September contracts with a cost basis of 148^07. This price imputes to the position partial profits taken at 151^09 in accordance with a recommendation I posted in the chat room at 10:39 a.m. (Note: I also emailed the guidance to hundreds of subscribers signed up for intraday notifications and alerts. As is my custom, I have used the worst price reported by a subscriber to establish an entry price.) For now, use an ‘impulsive’ stop-loss on the 60-minute chart. As of around 7:45 p.m. EDT, it would require an uncorrected plunge to  148^18 to trip the stop. Against that order, offer one of the two contracts to close at 152^20. ______ UPDATE (June 7, 4:00 p.m. EDT): For better or worse, a wide stop-loss allowed us to hold onto the position. Traders should adhere to the stop, which should be held in place when the futures start to trade again Sunday night. We’re likely to come away with a profit come hell or high water, but if the recent low fails to contain this relapse, it will likely spell more weakness ahead for T-Bonds.  The ostensible reason for Friday’s selloff was laughable (see my TLT update), which should raise the odds of a rebound on Monday. _______ UPDATE (June 9, 9:38 a.m.): The impulsive stop-loss suggested above would have popped you out of the position this morning at 148^18 (if not sooner, at around the same price). The theoretical profit on the position would have been around $700. _______ UPDATE (8:03 p.m.): I expect a tradable bounce from 147^21, a Hidden Pivot support drawn from the hourly chart. If it gives way, however, brace for more downside to 146^16, or possible 146^11.