ZB1!
BEWARE OF POTENTIAL REVERSAL - OBSERVATION WEEK COMING - ZB-30MNThe T-Bond 30 Years ZB is falling when the S&P500 is rising, Shouldn't it be the opposite when the economy is not going well?
Beware of the possible super return of trends that might come soon.
What about the timing at the moment?
We notice that at open or 2h after American open an acceleration of the price movement occurs. Also at London closing time.
What about the forces?
Forces are clearly dragging the prince down but no vision in where the price is going.
What about correlations?
Opposite correlation with S&P500, ES.
Same direction with Gold, GC.
The green vertical line is at the time in which tomorrow, Monday 21st, we probably should see some nice movements if the market price follow same pattern as during the week before.
We will still observe during next week. To repeat again, beware of trend sudden reversal. Probably, you can use this chart in combination of your S&P500 trading session, going in opposite direction.
S&P 500 Next Week Expected Move ($132.5)By definition, a contrarian is going to be early, but in order to be successful, they can’t be too early.
It’s in this small window that greatness exists.
Dramatic increase from last week's $73.5 Expected Move.
We are gonna be a-rockin' next week.
Market Damage Report:
Damage thus far? Mild, it's absolutely mild. We've barely skinned our knee.
All index products broke their expected move --> Broad market sell-off.
Many of the indicators I follow flipped bearish from neutral.
You're never going to get capitulation until you start to see correlation.
VVIX is in Never-Never Land.
(ZB1!) Bonds were eerily silent this last week.
They're still going to run to Bonds if s**t starts to hit the fan.
I find myself in a strange place where I agree with the fundamental argument against bonds, yet my gut, common sense, and charts say otherwise.
The dollar could explode higher.
DXY is the most often overlooked market indicator for me, despite its pervasive significance.
A dollar rally would be a sign of imminent and devastating risk for the marketplace. It looks poised to make that move.
Let's talk candidly about Gamestop (GME)
First of all, these monkeys actually think they're going to destroy the hedge fund managers. You're barely moving the needle.
As a retail trader, you do not stand a chance. A lot of people don't like the fact that they've been restricted by brokerage firms.
When you signed up for your brokerage, you signed a legal document that said your broker dealer has " Fiduciary Responsibility ."
I work as a fiduciary. I needed to ask myself, " Are my clients actually capable of handling this stuff ?" Now, I tend to agree with the
counter-arguments. I do! If you want to freakin' lose your money, you should be able to lose your money.
But in this case, you have no chance. You have no chance. You see people posting pictures winning $2 million dollars. The only problem is, that guy sacrificed a million people in order for that guy to make that $2 million. People are getting destroyed in here. Just smoked.
www.youtube.com
The SEC has a new sheriff in town, and they're just looking to make an example of someone.
The broker dealers, they don't talk to each other. You think they're talking to hedge funds? These people do NOT like each other.
Citadel and other brokerages are actually rooting for the retail client. They make their profit on the bid-offer spread. GMEs $10-wide spread has been extremely profitable for them. 600% implied volatility = death to a retail client. It just does. It's David vs. Goliath. It's childish calling hedge funds and brokers evil. In restricting you, they're doing you a favor. I will tell you first-hand that every single person I work with has your best interest put first, period. No if and or buts. Regulators are going to get involved in this now which means more rules and licensure for me.
Clean up your risk folks.
Best,
- RH
Bullish Bonds: Technicals vs. NoiseContrarian bet against the onslaught of bond bears.
RH Technicals vs. WallStreet
- Clean, MACD Bullish Divergence
- Descending Triangle, Completed E-wave signals new trend.
- 61.8% Fibonacci Retracement hit; Also referred to as the Golden Retracement . It is, after all, based on the Golden Ratio.
- And potentially a False Breakdown, likely to mirror the False Breakout of the B wave in the E wave.
Implications for the S&P go without saying.
Best,
RH
PLAY IT SHORT ENTRY PROBABILITY |T-BOND FUTURE - ZB1! - 30MNThank you for your shares and likes! Much appreciated!
__________________________________________________________________
We have identified the channels which have helped to see trade other markets
correlated to the ZB1! US 30 Years Future (Like GOLD for example).
See how the market is bouncing around those lines.
THE BLACK LINE
We have identified probable line illustrating the "what the price should be", The Bottom Black Line.
If the Bottom Black Line break, the probability to get profits in the short direction will be amazing.
For the recent past history, this Bottom Black Line has seen pullback up. Staying in a constant uptrend overall.
THE RED LINE
We have identified a Top Red Line which is probably the best place to enter short from.
But will the market find enough power to reach the $175 mark?
Probability exists since we have seen a super squeeze of seller recently.
Now small candle sticks a re running in the upward direction, one after the other like if nothing happened before. Nice 40 to 45 degree angle.
No coincidence, the market has closed at the top on the channel.
A critical point from which anything can happen.
The market could probably break up and test highs or go down staying in the blue channels traced.
WHAT TO DO?
It is more likely that you make good decision only when the market approaches those Red or Black line.
In between, anything can happen for the moment.
So 171.1, 172.23 and 175 will possibly be the most important prices.
So, probably, only wait and observe for the moment. This is also trading.
TBonds (ZB1!) 4H - Trapped traders on both sides of priceTrade setup
There are trapped traders on both sides of price above monthly highs & lows for TBonds ZB1! on 4H timeframe.
When price comes back to either of these zones - these trapped traders will want to exit - giving us an exit!
Risk management
1) Reduce 50% at 1R => Trade becomes risk free
2) Reduce further 25% at 2R AND move SL to break-even
3) Close trade at 3R
4) Winner = 1.75R
Strategy
Pickup a pair which is highly correlated to DXY (if trading DXY or an uncorrelated instrument, ignore the correlation)
AND
Wait for market structure to break, then trade the retest of that zone. Zone is drawn using the first candle which crossed the pivot high/low to begin trapping the traders
AND
Liquidity in form of equal highs/lows should not be present behind the stop loss
AND
Since the pair is highly correlated to DXY , the formation of HH/LL in DXY should support the trade's direction at the time of zone's formation