T-Bond trading comment (November 30, 2007)

The week is almost over and the close is not the most bullish as seen in the above graph. We have formed a nice hammer and according to chartists this is a bearish signal rooting for a change of direction. This would nicely cap-off the current run and would enable us to see lower prices...

Today was quite interesting. After initially trading higher, which enabled us to unload our long at 118-04 (we were lucky), the market went crashing down as equities posted another strong performance all across the board on probabilities that the Fed will cut rates and other central banks will follow suit. In a little less than an hour, the market lost a complete dollar before regaining a bit. Sadly, we missed that opportunity. At least our options are the right way... Afterwards, the market whipsawed between116-29 and the 117-10 zone enabling us to nibble on each side of the market. Liquidty was rather scarce today as it was year end for several US-dealers.

Next week, is a new month and the last of the year. The week will climax with the job reports on Friday... The market is expecting a softer number after two strong numbers.