Ticks in the ZB and ZN are denoted in 64ths, with a value of $15.625. 64/64ths are one point, which is $1,000.
Sorry I just want to be clear about the ZN pricing. The chart I am looking at show the difference between 112 and 113 to be 310. I don't get where the 64/64 comes in when I look at the graduated scale it reads 113, 113'005, 113'10, 113'015 all the way up to 113'310 then 114.
The difference between 112 and 113 is 32. That's 32 32nds or 64 64ths. Each 32nd has a value of $31.25. 32 32nds then equals $1,000. as does 64 64ths. Your broker can give you a more complete explanation, but that's how the Bonds and Notes are priced.
F2 Comments: The market broke hard into the day session on Retail Sales. The numbers were larger than forecast, but anticipated. When the news was out, the shorts began to cover and the short covering continued until 114-04 was touched and retested and held. The close at 113-18 was positive. The market is poised to retest 114-04. If it holds on the forecast retest, it will be the 3rd test of 114-04. If it fails to take out 114-04, this could set up a retest of 111-215. Little news Friday to drive the trading. Technical failure to break support at 112-28/113-06 or to take out resistance at 114-04 is what we will key off of. Can sell failure at 114-04. Or buy support at 112-28/113-04.
Monday 6/15 Pre Market Comments (06:34)_The market did trade higher as per the analysis hitting our first projected resistance level at 114-20 plus some. The structure supports a retest of 114-24 and/or higher prices. ES is called lower too, which should further support the financials. Want to buy early weakness and see if 114-24 can be taken out. If not, will exit. First buy zone is 114-17/21. Back up buy is 114-13OB.
Supportive News Rallys Market F2 Comments: The market has been headed higher since last Thursday. The rally continued today. The early news was supportive. The ES sold. And the financials traded higher. The marketâs traded the news as one would expect. The market can trade higher again Tuesday with some help from the news. The news, if as forecast, would be supportive. Tuesdayâs news: Housing Starts is expected at 483k; Permits at 500K; PPI at .6%; core PPI at .1%; Capacity Utilization at 68.4; and Industrial Production at -.8%. Want to buy early weakness and see if 115-00 can be taken out. If 115-00 is rejected, will start to look to the short side of the market. Buy zone is 114-17/21. Exit and/or reverse, 115-00 is rejected.
The Rally Continues F2 Comments: The rally continues. The news was split. The housing numbers werenât as good as the headlines. The ES sold and the financials rallied. Worse than expected economic news continues to support the bond markets. The close was strong. The market is pointed higher Wednesday. Some news to navigate: Core CPI is expected at .1%; CPI at -.9%; Current Balance Account at -85.0 B. Want to buy early weakness and see if 115-10/12 can be taken out. If not, will begin to look to the short side of the market. Would like to buy 115-01 OB. Preferred buy zone is 114-25/29. If 115-10/12 or the OVN high holds, will exit the trade.
F2 Comments: The market did rally as per the analysis and hit 117-04 before the buying was over. What has been behind this buying: short covering, supportive news, ES weakness and financial commentary on the fact that the recovery hasnât begun yet. The weak close was directly tied to the recovery in the ES. If the ES sells again and we can get some help from the early news, the Bond can rally and retest resistance at 116-04/12. Failure to take out this resistance should bring in more selling. Buy zone is 115-21/25 or 115-17 OB. Exit and/or reverse, if 116-04/12 is then rejected. Best sell zone is 116-19/27 based on todayâs structure.
Pre Market Comment for Thursday 6/18 (06:44)_Got our recommended buy off the OVN sessionâs opening. In fact could have executed at the back up price level. Market then rallied to 115-30, where the buying evaporated. Calls were liquidated yesterday with puts left in place. So definitely some profit taking after a strong 4 day rally off the lows. Market will probably move into a consolidation phase as it awaits the next round of news. If recession slanted, the financials can rally a bit more. If recovery slanted, it should resume the longer term downtrend. Will keep the buy recommendation for our first trade. Buy zone will be 115-17/21 for now. If 115-28/116-00 is then rejected, will look to the short side of the market.