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<DIV><FONT face=Arial size=2>Am really on hols, but when I saw this chart on my
screen, I just had to post it and buy a bunch of puts...</FONT></DIV>
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<DIV><FONT face=Arial size=2>I normally mis-trust angled wedges, because you're
never sure which way they are likely to break. I much prefer the flat
bottomed or flat topped variety, which, on the bonds, are usually very
reliable.</FONT></DIV>
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<DIV><FONT face=Arial size=2>In this case the S&P is the clue. The
break to the north should have made the bonds break to the south, if the
instruments are continuing to run in opposite direction. However, if
you look at the volume of the break out, north, once done it seemed to disappear
and the continuation the following day, did the same thing - only it then spend
the rest of the day retracing its steps...</FONT></DIV>
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<DIV><FONT face=Arial size=2>So now we start Monday, with the Spoo still very
much in the ascendant and the Boos having made what looks like a false breakout
north and a solid two-bar reversal. The only conclusion I have is
that lower price are now in order and, to keep my hand in the market while the
remainder of me is still in holiday mode, I shall buy some puts on the open and
see what happens...</FONT></DIV>
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<DIV><FONT face=Arial size=2>I think that summer is finally arriving here, so I
am off to be out in it...</FONT></DIV>
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<DIV><FONT face=Arial size=2>Trade carefully,</FONT></DIV>
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<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>
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