A 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.
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.
Here 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.”