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Coming Set-up For Early July: Long TBF or TBT
On June 28th, 2010 11:44pm Eastern Time




The Trade: Bonds have been soaring as of late as fear enters the market, therefore, yields have been down sharply and are near 3.00% on the 10 yr T-Note. Traders can look to enter the TBF when the 10 Year T-Note Interest Rate reaches 2.89%. This should be a very important support area for a bounce. When looking at recent calculations of time and price the ten year should have time support around the July 3rd - 5th time period which would line up with the current short term(mid cycle) for stocks. However, the 2.89% level still looks very attractive as we are almost at the early July time period already.

Traders can look to sell 1/2 of the TBF when the 10 yr T-Note Interest Rate chart reaches 3.07% and the rest at 3.25%. Once the first half of the trade triggers please move the stop loss on the trade to break even to secure a winning trade. Please risk 0.20 basis points on the trade, therfore, the stop loss is around 2.69% on the 10 yr T-Note Interest Rate chart. Once the trade is activated I will be able to give you numbers on the TBF. However, the TBF and the TBT are just trading vehicles to use off the $TNX(10 year T-Note Interest rate chart). Institutional traders can just use the 10 yr T-Note futures chart. 

*** More aggressive traders can buy the TBT (which is a 2x short the 20yr + Treasury)  

Disclaimer: All comments made by Inthemoneystocks llc and its subsidiaries, instructors, and representatives are for educational and informational purposes only and should not be construed as investment advice regarding the purchase or sale of securities, or any other financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities mentioned herein. Inthemoneystocks llc and its representatives assume no responsibility for your trading and investment results. All information for on the website was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Inthemoneystocks llc, its employees, representatives and affiliated individuals may have a position or effect transactions in the securities herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves a very high degree of risk. Futures and Options trading are not suitable for all investors. Past results are not indicative of future results. Inthemoneystocks llc, its subsidiaries and all affiliated individuals assume no responsibilities for your trading and investment results.



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