Wednesday, July 20, 2005

Hulbert's Bond Bears

As you know I am very bullish on the t-bond futures and the 10 year note futures. I expect the bonds to move into the 121-123 range and the notes to move to 116 over the next few months.

Wednesday's price response to Greenspan's testimony was intially bearish but soon thereafter both markets pulled a U-turn and wound up substantially higher on the day. Both markets passed the Greenspan Test with flying colors and this reinforces my bullish convictions.

You might also want to check out this column by Mark Hulbert. He observes that the bond market timers he follows are aggressively bearish. This is music to my ears.

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