T-Bond trading comment (July 18, 2007)

Finally ! We have a normal day (ie: nice opportunities in the morning and nothing really interesting in the afternoon). Scalpers had at least 4 nice breakouts with one bad just after the CPI numbers when we lifted everything up to 107-24 where there was some aggressive selling. Talking about that, 107-24 was really a good marker today with some heavy offering lingering there all morning long. It finally took the Lehman rumour to boost past that mark, even Bernanke was not enough to pass over it. Trend traders should also have had a decent day, with a first downtrend initiated with the CPI number and after that a very clear uptrend with Bernanke and Lehman.

Looking at a bigger picture, we may notice that the 21 day moving average is doing the job as a nice support for the past few days. The question is will it continue and will we see a rally ? Stay tuned...

Tomorrow we are having the last economic numbers of the week, with the claims, the leading indicators and the Phily Fed. Not much expected here. Also Bernanke will re-do today's speech. What will be interesting will be the Q&A.