T-Bond trading comment (September 10, 2007)

We had a bit of job left to the upside after friday's bull rally and we did it today! We are now at the top of the 113-16 / 114 resistance zone and looking like wanting to take a breather after 2 bucks in 2 days. On the upside, the next big zone is the 114-20 / 115 area. If we break this, we validate a double bottom configuration with an ultimate potential around 124. We opened the day about flat compared to Friday's evening and from there we started to bid the market. Trend followers will have had a nice day as the market broke very nicely. Short gamma players, will have ran all day to hedge their books as well as market makers since it was a one way street.

People are running scared right now and are not necessarily logical.The market is like a herd of mad cows not thinking and moving all in the same direction. People are fearing a full blown recession after friday's weak NFP, but it is maybe a bit early to be that gloomy.

The rest of the week will be quite ligth in terms of economic numbers with only retail sales and import prices on Friday.