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<DIV><FONT color=#000000 size=2>It's interesting to see how differently we look
at the same picture.</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT size=2>The way I interprete you lines, Bill, are TRIANGLES OR
PENNANTS and I would even like to draw your flat bottom triangle
differently.</FONT></DIV>
<DIV><FONT size=2>But in my book of chartpatterns we also see a rising wedge
ABCD and breakdowns of risings wedges are usually good trading vehicles, since
the moves are usually fast.</FONT></DIV>
<DIV><FONT size=2>The top at E, indicates weakness since it didn't reach the
upper trendline. </FONT></DIV>
<DIV><FONT size=2>the weakness was confirmed by the breakdown at F.</FONT></DIV>
<DIV><FONT size=2>Then we have a test from below of the Wedge at G, which
coincide with with your upper trendline. thus we have a rather strong
resistance.</FONT></DIV>
<DIV><FONT size=2>Confirming that strong resistance, is the fact that the BDG
trendline has been touched 5 times.</FONT></DIV>
<DIV><FONT size=2>Thus, we SHOULD, continue down from this level.</FONT></DIV>
<DIV><FONT size=2>However, if we don't, look for a powerful move up, since we
need power to penetrate the trendline AND we have a failure on the
downside.</FONT></DIV>
<DIV><FONT size=2>These failures often generates powerful moves in the oposite
direction.</FONT></DIV>
<DIV><FONT size=2>So, I would play it with a short trade and a stop and reverse
one tick above the top between E and G or above E, depending on you trading
style.</FONT></DIV>
<DIV><FONT size=2>Looks like a lowrisk trade though, with a stop so close to the
close (if you don't use stop and reverse).</FONT></DIV>
<DIV><FONT size=2>Note however that I am not trading, so it's just my
opinion.</FONT></DIV>
<DIV><FONT size=2>regards</FONT></DIV>
<DIV><FONT size=2>Stig</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
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<DIV><FONT face=Arial size=2><BR> </DIV></FONT>
<DIV><FONT face=Arial size=2>Just to continue the strand on wedges on the
bonds, here is a Gif file some might be interested to see - and care to
comment on, insofaras when they might think that there might be a break (to
the south?)</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=Arial size=2>At least the last two days have had good sized
bars and there has been a good chance to put bread on the table, but if the
wedge is going to be contained for a bit, then there is going to be some
shrinkage before 'the off'. But I think the loading up of puts for the
position players cannot be put off for much longer... pun intended,
naturally!</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=Arial size=2>Mind you, if the Spoo goes on heading south
with such determination, the bonds might just pop out of the top of this
wedge and that would not be helpful. Still they are supposed to be the
safe haven instrument, aren't they?</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=Arial size=2>Take care,</FONT></DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV><FONT face=Arial size=2>Bill Eykyn<BR><A
href="http://www.t-bondtrader.com";>www.t-bondtrader.com</A><BR>"Learn
to read the tape"</FONT></DIV>
<DIV> </DIV>
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