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Wednesday, October 28, 2009

Market Thought... consolidation

There is a consolidation taking place with the 10yr note. Previously I indicated if this was to happen I would look to get into the TBT.

The 10yr yield is coming down, and approaching its 38SMA, and stronger 3.33 support.

I will most likely use this decline to enter the TBT soon.

Also, this indication may suggest a market consolidation to which the SP 500 may bounce off the 62SMA support or the support around 1025-1030.

Right now, the clarity is on a bounce from the 62SMA for the SP500. IMO, this an opportunity to enter the UUP and TBT to play the dollar rally and higher market rates.

Hedging my market thesis, I also have long positions in NLC, just got a limit order executed for F, PWR and BKE. Also, if PWR see below 21 with this decline, I will enter a 'larger than initial' position as the SP500 approaches its 62SMA.

I am hard-pressed not to play AAPL or GS here for a bounce, but discipline holds me back.

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