FOR WEDNESDAY: (4/12) World political and tension cycles are still strong into Wednesday and Wednesday night but may lift late in the week. We looked at cycles for North Korea and its President and he could easily not survive world pressures from China and the US this summer but there’s a lot of time until then. Usually these situations get worse before they get better so expect that the trade will stay on edge on Wednesday. Anxiety cycles and military reckless cycles continue into April 23 so if anything, things will heat up.
JUNE T-NOTES (10 year) (Electronic Version)
TRADING RECOMMENDATION: Wait for morning comments.
TODAY’S COMMENTS: (4/12) We were stopped out for a messy 21-tick loss as we were naïve about how bad to flight to quality could be. Market stalled just near the 62% retracement plus slippage. Acceleration through 125.19 could lead to 125.30 but is not favored. Will see where we are in the morning.
SHORT-TERM: The 30-year bond made a slight new low while the 10-year didn’t on the continuation charts and that was probably a 5th wave on the continuation chart and now a larger congestion pattern needs to develop before more downward action can happen. Cycles aren’t totally supporting that theory with much of April looking lower and seasonally May is lower so maybe we should think that 125.20 for a C-wave will manifest by early April and then set up that pattern completion to 119.29 or 119.00 into late May.
CYCLES OVERVIEW: Lower into April 14-16; higher into April 17; higher into April 20; lower into April 21.
