BONDS

For those who subscribe to my service you are already aware of the selling opportunity I pointed out for BONDS. In this chart you can see that right on cue this market has started to head down. Before patting myself on the back too much I have to admit that I also had mentioned this sell setup the month before. I was early on that call, but timely in this one.

The Trendline drawn in red served as an ideal entry point into this market. I do not believe in drawing a bunch of lines on charts and then claiming that "see I was right it stopped right on this line......etc." However, if there is a clear trend line that can be drawn between two points like this one, it has to be taken into consideration for larger picture views on things.

Also notice down below that the commercials went heavily to the short side recently right as we were kissing this trend line. Our service did get a short trade marked on the chart that made 19 ticks profit. That is a short term trading method that does not ride larger moves. This setup has the potential for a larger move than that, so anyone short from above should just have trailing stops to try and ride this for a bit.

Normally taking half of your position off at an equal point to the intial risk, and then trailing the balance at a break even from your entry price, is a good way of both catching large moves and minimizing risk.