Bond Market about to fall – US indexes stall Day traders are looking for low risk entries on this continuation up.

This is the weekly chart on the 30 year bond futures. in the bond market trading  Price has just moved down the past week to break the support at 139.17 where it has held up for over four months.  we have had slightly decreasing volume during this period until the floor was broken.  Sellers moved in this last week an evidently the Fed has not approved more Economic Recovery team dollars to hold them up at this price.

The unfortunate side to this price action is that in the long run the fed might have to increase bond market interest rates in order to lure the Chinese back to the table.  As the Fed gets the treasury to print more and more dollars it weakens the value of the dollar for foreign investors and could put the bond market in a free fall.  This interest rate hike will occur when bonds drop through the previous support around 127.16 and works it way to 116.16 where we could start to see strong support.  If this moves down to this level be prepared to see out housing market get its second round of beatings.  As interest rates soar to cover and bring money in for the bond sales to support our interest on the deficit, we will see housing loans slow, price drop and more down ward pressure on employment and increasing food prices.  With in a year we could see the formation of a pattern known as a head and shoulders with the right shoulder approaching 127.60 as resistance to consolidate and then another sell off in the bond market.  The bond market could be widely held by the Fed, as a sort of quantitative easing.

Long term the implications are huge to our economy.  When the bond market s are not held and sold into the bond market, most will be going at a discount compared to previous low interest prices.  This discounting in the bond market will drive interest rates up.

The good news, is that depending on the volatility of Oil, and threat of war with Iran, the US stock markets could be looking at the next bull run.  As we have settled above the 1400 level on the S&P500 emini futures, if this support holds then we can see our next move to 1460, then 1520.  This too will effectively be putting in a Head and shoulders pattern on the long term charts with 666 being the target on a long term double bottom.  Not as if the market will act rationally but this pattern could arise in as early as Sept – Oct  2012 or in spring 2013.

Trade what you see and never listen to the so called experts. If you can’t see the direction of the market and don’t understand how to use a stop, then don’t trade. Never take stock tips, and if it is on the TV as a hot pick, it is too late especially in Bond market  trading!

Day trading course focusing on the S&P500 emini futures support and resistance and efficient market hypothesis which states that stock market prices are essentially unpredictable. Be responsible for your trades, do your own work and never rely on others. When searching for a Day trading course, be sure you understand the risks involved in stock trading,  bond market trading and futures trading.

Day trading course looks at price and direction, the support and resistance and the direction of the stock and bond market.

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The S&P500 emini futures is one of the largest professionally day traded markets in the world. Our Day trading course focuses on training you on how to see price and direction in the marketplace and how to leverage your strengths to take a profit out of the market.

Disclaimer: day trading is high risk, do your own work : The efficacy of both technical analysis and fundamental analysis is disputed by efficient market hypothesis which states that bond market and stock market prices are essentially unpredictable. Be responsible for your trades, do your own work and never rely on others. When searching for a Day trading course, be sure you understand the risks involved in day trading bond market.