US Treasuries Gain, As Global Economy Quakes
by AL MARTIN (INSIDER INTELLIGENCE.COM)
(2-2-14) We continue to trade the March Long Bond contract on the long side, a continuation of our previous week's recommendation. We see the Bonds traded up to test 134 in both Thursday overnight and Friday day session trade.
We were long the Bonds once again from 133.02 from Thursday's session and were able to sell them on our standing order at 133.30 in Friday's day session trade, Bonds going out near their highs in anticipation of weaker Chinese data coming on Saturday, which in fact did come and was weaker than expected. We would expect the Bonds to move higher in Sunday night trade.
We're coming into the new week short the March Spoos at 82.50. We would expect the Spoos to also weaken in Sunday night's trade for the same reasons.
We continue to trade the March Oil contract from the short side on rallies to 98.00 or better, taking out 50-75 cent scalps. Oil continues to be overbought at current levels. With a cool-down of Iranian tensions over the weekend, we would expect the Oil to come down to test the 97.