The US 10-year T-note (ZN) market did not perform particularly well during December as the nearby futures contract closed the month at 130-150. This after taking out both the November high of 132-015 and equaling the October peak of 132-085. I can still make the case the major (long-term) trend turned up with the bullish spike reversal during November, with a common characteristic of a spike reversal being a quick retracement. That being said, it is important for the ZN to hold its November low of 129-160 as we make our way through January. A move below that mark would signal a possible extension of the previous major downtrend to the next target of 129-025.
Theoretical Position: If long positions were established near the November settlement of 131-175, sell stops would be placed just below the November low of 129-160.
