T-Bond trading comment (July 24, 2007)

It was an interesting day today, with nice opportunties for scalpers and contrarians. Like yesterday, we started right off the opening by attempting to run down our new support at 108-05 on the T-bond and 106-03 on the note... As seen in the graphic we failed.... Afterwards, market operators just thought that, "hey if we can't go down, let's go up", but again we failed on yesterday's high. So it looked like we were in for another rangebound day.

On the bright side, the market offered us nice opportunities from which we could profit early in the morning. After lunch, the low was again tested and it failed again with some nice support on the bid. But this time in addition to having a technical support, we also had the equity market that was showing serious weaknesses. After that we grinded higher in perfect correlation with the down movement in equities and broke out of the range.... This little equity crisis, supported volume throughout the day, which enabled short term players to stay in the market longer than usual.

Also worth of noting is that the tip auction went quite well today showing strong interest.