USM15 – June T-Bonds (Last:151^16)

Inches from a major targetAs badly as the futures have gotten socked this week, there’s still a little room before they hit a longstanding correction target at 150^07.  The ABC pattern shown is sufficiently clear and compelling to suggest that the target, a major Hidden Pivot support, will have tradable consequences (as will a Hidden Pivot at 117.23 in TLT, an ETF that can be used as a proxy for this one). T-Bond futures typically fulfill targets in all time frames with a relatively high degree of accuracy, so if you are looking to bottom-fish the easy way, try a 150^09 bid, stop 150^04 for a single contract. You can step up the size if you use ‘camouflage,’ but don’t attempt this if you’re not familiar with the tactic. If I’m in the chat room when the target is hit, I’ll provide guidance in real time. (Note: The equivalent target for the September contract, 149^24, has already been reached. The discrepancy versus the June contract called for a ‘camouflage’ entry.  On the two-minute chart, the first such opportunity that met our criteria would have  come at exactly 7:28 EDT Thursday morning, at 149^17. Initial risk would have been a theoretical four ticks.) _______ UPDATE (11:27 a.m. EDT): Based on reports in the chat room from subscribers who reported actual fills in September T-Bonds and TLT based on my targets, I’m establishing tracking positions in both: a 117.35 costs basis for 400 shares of TLT, and 149^24 for four T-Bond contracts. (As is my custom, the prices I’ve used reflect the worst prices paid by subscribers.) In a 10:39 update posted in the chat room and emailed to subscribers who are signed up for intraday ‘Notifications’, I suggested taking a profit on half of the position(s). At the time, USU15 was trading for around 151^09, and TLT was near 119.  Imputing the profits thereof to our remaining paper position would yield an adjusted cost basis of  148^07 for two USU15 contracts, and 115.70 for 200 shares of TLT.