Stay Short The 10 Year Note
Michael Seery of Seery Futures - InsideFutures.com - Tue Jan 02, 10:51AM CST

10 Year Note Futures--- The 10 year note in the March contract is down 12 points at 123/21 as I have been recommending a bearish position from around the 123/24 level & if you took the trade continue to keep the stop loss at the 125/00 level for another week as I want to give this market some room as I still remain bearish.

The U.S stock market is off to another strong start in 2018 as we are sharply higher across the board once again as I think that trend is going to continue for the rest of the year as that should start to pressure the 10 year as we are currently yielding about 2.45% as I still think we could climb to 3.50% by the end of the year as the Federal Reserve is expected to raise interest rates 3 or 4 times throughout the year.

The U.S has now experienced 3 straight quarters of 3% GDP growth which has not happened in over 10 years as I think that number will even increase to 4%/5% due to the tax cuts as these incredibly low yields are a thing of the past in my opinion & if you have not participated in the trade I would still sell at today's price levels as the risk is around $1,200 per contract plus slippage & commission.

The 10 year is still trading below its 20 and 100 day moving average as the trend is to the downside and if we break the contract low which was hit on December 21st at 123/12 I think the trend could accelerate to the downside so stay short as the risk/reward are in your favor.

TREND: LOWER

CHART STRUCTURE: SOLID

VOLATILITY---LOW

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