March Treasury Bonds are down 16/32 at 117:24 this morning as I write.  The included chart shows that following the one day rally last Thursday, the March T-Bond market has largely given back that rally Friday and today so far.  Still looming overhead is the double top at 123:00 and below is a double bottom in the 117:00 area.  The directional movement indicators are bearish but the ADX line is meandering sideways.  A close below the 117:00 area would be bearish and the downside target of the confirmed double top would be in the 110:00 to 111:00 area.  We shall see.  For now, I recommend holding our current positions.

 Followers should be:

 Long one March Bond (114:00 strike) put option from 2 12/64. (Cost basis of 28/64, or $437.50, if you include the buy back of the two short 110:00 put options on December 8th).

Long one March Bond (108:00 strike) put option from 52/64.  (Cost basis of 2/64, or $31.25, if you include the buy back of the two short 105:00 put options on December 8th).

Long one March Bond (117:00 strike) put option from 128/64.

Short one March Bond (113:00 strike) put option from 51/64.

March options expire in 60 days.

 David Hall

 The information and opinions contained herein comes from sources believed to be reliable, but are not guaranteed as to accuracy or completeness. The risk of loss in trading futures and/or options can be substantial. Each investor must consider whether this is a suitable investment. When trading futures and/or options, it is possible to lose more than the full value of your account. All funds committed should be risk capital. Past performance is not necessarily indicative of future results.

 This newsletter is not intended for dissemination to the public without prior approval from David Hall.