Monday, August 07, 2006

SHORTEST BEAR MARKET IN HISTORY?

As the Treasury auctions 3, 10, and 30 year securities, the bond market has rallied sharply, returning to the levels of March 2006 when this bear market began.



Experienced traders will be selling into this rally, expecting prices to fall as new supply enters the market.

Gold prices have broken.

Money is under control.

TACTICS
Sell into this rally, but be prepared in the weeks to come to change your opinion of this market.

STRATEGY
Continue to put new money into shor-term instruments and expand the Money Market Arbitrage operation.