T-Bond trading comment (July 23, 2007)

Are we entering the summer days, where nothing moves and everybody waits the close to hit the beach ? In all cases, the daily movement and the volume were dismal today. Granted, no economic news were due today...

After friday's run-up in prices we could have expected today to be a giveback day and it did look like that until 9h30 AM. At that point we were down almost a quarter of a point and looking good to lose a bit more but that was discounting the fact that we were, at that moment sitting, on the old resistance (108-05) that we broke friday morning. This old resistance/new support was well defended with bids sitting there all day long in Notes and Bonds and nobody really wanting to hit the bid. Only 9 traded in the T-Bond and 64 in the T-Note.

For scalpers, there were several good opportunities today. First when we started down at the opening at 8h20. After initially retracing, the market resumed its early trend. Another good point was when we hit the old resistance at 108-05. Finally, around 10h07 we had a false break to the downside that gave a nice spot to enter long in the market. Afterward, the market started to die out, but first it again tried to take out the new support unsuccessfully.