MKM's O'Hara Makes the Case to Short U.S. Treasury Futures

The video discusses market reactions to Fed Chair Powell's congressional testimony, highlighting a dovish response with rising S&P 500 futures and commodities, and a weaker dollar. It explores the relationship between gold and interest rates, noting historical trends and potential future movements. The discussion includes insights from JC O'Hara on Treasury notes, suggesting a strategy to short 10-year futures due to a strong uptrend and potential mean reversion.

What was the market's reaction to Fed Chair Powell's testimony?

• Bearish across all asset classes

• Dovish, with increases in S&P 500 futures and commodities

• Bullish, with a strong dollar

• Neutral, with no significant changes

How does the relationship between gold prices and 10-year yields typically behave?

• They move in the same direction

• They are unrelated

• They have an inverse relationship

• They both decrease during inflation

What is the suggested trading strategy for Treasury notes according to the transcript?

• Invest in gold instead

• Buy 10-year futures

• Short 10-year futures

• Hold Treasury notes

What is the significance of the 200-day moving average in the context of Treasury notes?

• It shows the average gold price

• It predicts future interest rate hikes

• It is used to measure how stretched the market is

• It indicates a bearish trend

What are the key levels mentioned for Treasury note futures?

• 100 and 105

• 130 and 135

• 110 and 115

• 122 and 118