The so-far nascent rebound blew out a cautious attempt to get short last week with such ease that we should think expansively about how far it could go. The pattern shown allows for a run-up to 160^07, and my gut feeling is that the futures will need all of that room over the next 7-10 days. That implies ‘mechanical’ bids will enjoy favorable odds all the way up. There’s about $1750 of implied entry risk per contract, however, but w can cut that down to size with ‘camouflage’ set-ups that reduce our theoretical exposure by perhaps 90%. Pay close attention to price action at 156^14, since that is the ‘D’ Hidden Pivot resistance of a lesser pattern. If it’s easily surpassed, that would be warning bears to step out of the way. _______ UPDATE (Jan 24, 8:31 p.m.): The futures reversed sharply after topping four ticks above the 156^14 resistance billboarded above. No one mentioned wanting to trade this vehicle, so I provided no further guidance.
USH22 – March T-Bonds (Last:155^15)
