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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> </DIV>
<DIV> Stig, your statement above is absolutely correct! Just look at
the difference one day makes to the whole picture. The wedge has
gone and heaven knows what your waves will have done. The fact is
that, for whatever reason you want to say, the bonds went north and did a Double
Top on the Contract High. Puts are obviously somewhat cheaper up there,
but do you still want them, is the burning question. With the yield
getting to within 4 basis points of 6%, some would say going any further north
will see a huge sell off. In technical terms, a DT should be a rather
stronger signal than a wedge (but I don't know about the EW stuff??)
Clearly, the move had huge implications for the position player (and
certainly the EOD trader!), but for the day trader, it provided and excellent
opportunity to make some money - whatever...</DIV>
<DIV> </DIV>
<DIV>In making such a move, it had to take out the previous day's high,
which (regardless of any previous 'view') was enough for a day trader to go long
- if not already having done so off the stall and little wedge just a tick above
the key resistance line at 94^23. Having done so, the market just never
stopped till it got to the Contract High. In fact, it went through by a
couple of ticks, but eventually took the line of least resistance and sold off a
dozen ticks. So...</DIV>
<DIV> </DIV>
<DIV>While surprised by a break 'the wrong way' of one of 'my' wedges on a
longer term, much can be made by the day trader. The main thing was
that the 'little wedge' up to Yesterday's High, got one facing in the right
direction. Failing on the bounce turned out to be painless, but
succeeding on the breakout up to the Contract High and taking a final short
trade, for a few more ticks, put a good sized loaf on the table
and...</DIV>
<DIV> </DIV>
<DIV>...another day is another day, tomorrow!</DIV>
<DIV> </DIV>
<DIV><FONT face=Arial size=2>Well, anyway, that was the Ides of March
2000</FONT></DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV>Bill Eykyn<BR><A
href="http://www.t-bondtrader.com";>www.t-bondtrader.com</A><BR>"Learn to read
the tape"</DIV></DIV>
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