Moar Steepening!We made quite a bit of money last night being long $ZT_F and short $ZF_F and we're putting the trade back on right now. We think there's a ways to go here - too many people caught way offsides by this bond dump.
Zf_f
2s/5s Ready to Steepen?$ZT_F vs. $ZF_F: looks like a rounded bottom is forming with a little bullish wedge over the last 8 hours. Inflation IS becoming a concern globally, so this should have some legs.
Elliott Wave View: Soybean Impulsive Rally Favors UpsideSoybean (ZS_F) cycle from May 13, 2019 low shows an incomplete 5 swing sequence, favoring further upside to end 7 swing double zigzag structure. On the 4 hour chart below, wave (X) ended at 867.4. Wave (Y) higher is unfolding as a zigzag Elliott Wave structure where wave A of (Y) remains in progress. The internal subdivision of wave A is unfolding as an impulsive structure. Up from 867.4, wave ((i)) ended at 903.4 and pullback in wave ((ii)) ended at 888.2.
The instrument has resumed higher in wave ((iii)) towards 950.4 and pullback in wave ((iv)) ended at 938.4. Expect wave ((v)) of A to end soon. Afterwards, Soybean should correct the cycle from December 3, 2019 low within wave B before the rally resumes. We don’t like selling the proposed pullback and expect buyers to appear in the sequence of 3, 7, 11 swing for more upside as far as pivot at 867.4 low stays intact. Potential target higher is 100% – 123.6% Fibonacci extension from May 13, 2019 low which comes at 1021 – 1057 area.
