Trading Recommendations For the Trading day of Tuesday

By Marc Nemenoff
01 September 2009 @ 10:49 am EDT

Financials: Dec. Bonds are currently 11 lower at 119'13, the 10 Yr. Notes 1 lower at 117'04, the 5 Yr. Notes unchanged at 115'08 and the 2 Yr. Notes 1 higher at 108'06.5. Yesterday we rolled our short Bond position into the Dec. contract and will use a protective buy stop at 120'10. If the market trades below the 118'20 level lower your buy stop to the 119'31 level. I'm sure that you noticed that the Dec. contract is at a discount to the Sept (about 1'05). In terms of price this will change my downside objectives from the Sept. contract. Near term my objective is the 117'00 level and longer term my objective is now the 115'00 level. One more thing to note, the minimum tick size in the Bonds has changed from 0.5 ($15.625) to 1.0 ($31.25) as of August 31st.

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