Short the bonds.

091009tbtA pretty obvious signal to buy TBT the bond shorting ETF.  PST will work too but the chart is not as striking as TBT where a trend line is broken by a power bar on arresting volume.

091009tlt

All the bond ETFs look salable with gaps and heavy power bars down.  Here the SHY with a bull trap top and a signal gap down.

091009bwxHere the BWX with an exhaustion gap up and a power bar down to cancel it.

It seems a little early to us for this market to crack, but semi-aggressive traders (and for sure aggressive traders) will be scaling in here.  We bought the TBT and some silver (SLV) and some UPRO for our CANE&M account.

Meanwhile, speaking of arresting, shouldn’t we be arresting Kenneth Lewis and Lloyd Blankfein of Government Sachs?  Actually while we’re at it Berlusconi is on our wanted list too and –oh-oh if we get started on our arrest list we’ll never finish this letter –we’ll just summarize the list by including most of the members of Congress.

Our favorite quote from Mark Twain:  “Americans are by nature an open, honest and gregarious people, and our only native breed of criminal is the Congressman.”

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