(Dec 13, 2021): Looking For That Final Uptick In Equities, Followed By Large Declines; 10Yr Yield Still Expected To Fall Which May Benefit NQ, ES Over YM, RTY

Summary

• Too busy yesterday to post this -- my apologies. We will just present chat snippets to save time.

DECEMBER 13, 2021

ASIAN OPEN BRIEF:

LOOKING FOR THAT FINAL UPTICK IN EQUITIES, FOLLOWED BY LARGE DECLINES; THE 10YR YIELD TRAJECTORY STILL LOWER, WHICH MAY BENEFIT NQ AND ES OVER YM AND RTY

Lets add some NQ scalpers, with the 10Yr yield starting to fall.

We are now likely tracing that final wave 5 depicted in this post Wednesday, last week (December 8.), after ESZ1 bottomed at circa 4660, per original expectations.

ES should get a strong tug higher, from an NQ rally.

We will use these long scalpers as temporary hedge to the short RTY hedge from Friday (if orders are filled). last week. In which case, we need another 576 long NQ contracts for full hedging. I am not sure the RTY will rise substantially -- but just in case . . .

PRE-NY OPEN BRIEF:

EQUITIES ARE FALLING OUT OF BED, AS YIELDS FALL SHARPLY

I was away an hour, and comes back to falling yields and equities. The Trade Boys told me the long scalpers were not filled -- lucked out on this ones. We cancel these long scalper trade longs to get those orders offline.

We reset to SELL the 1000 contract RTY short overhedges which we monetized on Friday.

We are ofloading the short hedges at some point, and adding to longs after that. Just give the bears a little more time to play.

This is how we see ESH2 develop to the downside.

And NQ downside evolution may look like this below.

And this one is for YM . . .

. . . and ditto, for RTY which is the one index we are massively short at.

I will see you in Europe open Tuesday.