Bond Futures or Treasury Futures as their called, are the best contracts you can trade. Anybody that considers themselves a day trader should be trading this market. I would venture to say that with these four contracts, the 30,10,5, and 2 year notes, you have several advantages that you wouldn't have if you were just trading equities. What If I were to tell you that there are four stocks you should trade, A,B,C and D. And that if stock A went up, the next day B would go up and the next day C would follow, and so on. Sounds like a good program right? Your first reaction would not even to trade Stock A, but rather just to use it as an indicator for what the rest of the stocks are going to do. So when Stock A went up you would be ready to buy Stock B the next day. Well what if you were a day trader and these occurrences happened daily? So forget the analogy with the stocks, this is how the treasury futures market moves, and it is exactly how we trade them.If you like stock or futures trading you will like this technique! As you notice with the charts below, the thirty year T-bond has just began to swing to the upside. In the charts below, the bonds, the notes were following, have yet to duplicate the direction of the bond creating an opportunity to the upside for the notes.
