T-Bond trading comment (September 24, 2007)

We are about flat on the day, but this is not a fair description of the day. We arrived this morning at the office with the T-Bond loosing half a buck overnight. As soon as everybody was fully seated at their desk, we started to run higher as market participants had increased fear of an economic slowdown in the US. In accordance to that, equities were hit, thus rejecting for now, higher highs . It is worth noting that we have been in this dynamic since early June 07. Bear, here we come ???

We are slightly up for the day, but we still haven't validated a bullish configuration. As long as we are at the 111/111-04 level, we will be in a corrective move.

Today we didn't have any economic news, but tomorrow we are up for S&P/CS index (loss expected here), Richmond Fed Index (another loss there too) and home sales ( guess what? another loss too!). If the news come out on the weak side we might very well end our corrective move.