The Day Ahead: PM Edition 2022-01-05

The markets fear the FOMC will take away the punch bowl

Bonds

Another down day in ZB. Possible that there is a low degree wave III is here and could cause a minor bounce that should be held under 157^09 or 157^26. Overall think 155^20 is a better target for a wave (III) low but admit the drop is getting overdone in the short term.

Prefer a tap of 155^20 prior to a better bounce

Crude Oil

I’ve tried to hold off …