/ZN (10-yr Treasury Bond futures or IEF, 7-10 yr ETF) offers an objective long entry or add-on to the existing trade entered last week following the recent breakout & divergent low. Previous (Thursday’s) and updated 60-minute chart below.
ZN 60m Aug 17th
ZN 60m Aug 23rd
I’m adding to my long exposure to Treasuries with some /ZB (30-yr T-bond futures or one could use TLT, 20-30 yr T-bond ETF) to effectively leverage up the trade (the 30-yr bond has a higher duration than the 10-yr. As per last week’s post on the /ZN- IEF entry, Treasury bonds have much lower volatility & profit/loss potential compared to equities & as such, I typically make a beta-adjustment of 2x or greater to my position size.
ZB 60m Aug 23rd
IEF 60m Aug 23rd