December Treasury Bonds are up 12/32 this morning at 120:16 as I write. The enclosed chart shows that bonds prices, so far, have held the moving average and intermediate trend line support in the 119:00 area. The directional movement indicators are still barely holding on to a bullish posture. I won’t consider the short side until the directional indicators turn bearish, and even then I need to see some sort of trend line break and other technical indicators to support the trade. In the mean time, the trend is still up. I am currently flat in bonds for now, but if you happen to be long, you might want to have your protective stop just below the 119:00 area. Let’s see how the bonds develop over the next several days.

Oct. 13, 2009
David Hall