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Bonds and the first rule of trading
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AT-January 2008-7
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All short-term trading strategies in bonds, notes and other markets affected by long-term interest rates will need to be adapted to the reality of a new bond bear.
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Detailed Description
The premise behind multiple- timeframe analysis is simple: You have to know whether you are in a bull or a bear market. That is the first rule of trading, and it goes beyond the dictum that in a bull market you have to be long, bullspread, or out. At the risk of inflaming the more doctrinaire technicians, not only are the internal dynamics of bull and bear markets different, they differ across commodities.
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