T-Bond trading comment (October 10, 2007)

Another indecisive day ! After trying new lows in the morning session, we reversed the bets but failed on the 111-03 threshold. Afterwards, we slowly drifted back toward the opening price on low volumes. Pretty early this morning, the market tried new lows and we did break through the 110-18 level but the move was not very convincing and in addition to that stock future were getting a bit tatooed and we promptly went higher. This leg to the upside was pretty easy to forecast and many people jumped on the band wagon.

Beginning of the afternoon, we arrived at yesterday's high and resistance for the last three days at 111-03/04. This was the signal to take off the longs (personnally we took them off much earlier and much lower ) and see what the market had in the stomach. In the end, we failed to the upside as we failed to the downside in the morning and retreated to our opening price for the close. Short vega players are happy as volatility has been crapping out for the past week.
Tomorrow we have import prices as well as claims and monthly budget statement... Nothing overly exciting.