The past 4 month 4 point range in the $US_F contract has been truly remarkable. With a 4 point range off a $140 you aren’t talking about a lot of price volatility going back to last November. When you have a contracting sideways move it can only mean one thing, at some point it’s going to break out and it’s going to be a big move. Figuring out which way the long bond impulses out of this consolidation will be the key to trading risk assets over the next 3-6 months and maybe longer.
This asset has been lulling you to sleep and while everyone is focused on whether stocks are topping they aren’t paying attention to the implications of a triangle breakout in the contract. in either direction…. prepare for handle check..