March Treasury Bonds are down 7/32 at 121:13 this morning as I write.  The included chart shows that March T-Bonds are in an uptrend that has run into resistance at the previous rally highs in the 123:00 area made in early October.  The directional movement indicators are bullish and the ADX line is rising slowly.  There should be good support for the bonds on this pull back in the 120:00 right along the 200 day moving average and the mini break out area that took place a little over a week ago.  So, I recommend standing aside from placing new positions until prices test back into the 120:00 area.  At that point, I will see if a new trade is warranted.

 Followers should also be long one March Bond (114:00 strike) put from 2 12/64 and short 2 March Bond (110:00 strike) put options from 1 9/64 each for an overall credit of 6/64 or $93.75 gross.

You should also be long one March Bond (108:00 strike) put option from 52/64 and short 2 March Bond (105:00 strike) put options from 29/64 each or an overall credit of 6/64 or $93.75 gross.

March options expire in 79 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.