T-Bond trading comment (August 13, 2007)

It is official, we are in the swamp where nothing trades. Today, we had less than 275k T-bonds which traded. This is low. In spite of this low volume there was several opportunities for people trading off the stock market as we again mirrored to the perfection what was going on on Wall Street. For trend traders we only had one nice opportunity this morning when we started to break out of the bottom of the day.

For the next few days, we might experience some low volume as we are hitting the height of the summer vacations. Also something else to keep in the back of our mind is that there is still some possibility for more negative credit news, but right now the only thing we are hearing on the wires is that we are now seeing tremendous opportunities and that we are over the worst part of the credit crunch.... We will see.