Speaking of targets, a T-Bond forecast (and trading recommendation) disseminated to subscribers on Sunday night caught yesterday’s low in the September futures to the exact tick. We’d been quite bullish on the bond futures but told subscribers not to buy any contracts until the “Seps” corrected down to 126^07. (Click here to see the actual recommendation.)  We backed off the trade when the futures failed to hit 126^07 on the first pass yesterday morning, but the support itself appears to be holding. If so, a surge in the Bonds could portend the flight of capital from stocks over the near term. For that reason, we’ll reevaluate our 10757 target in the Dow – 220 point above current levels – if T-Bonds and shares diverge sharply today with the former going higher. 

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-- Posted Wednesday, 28 July 2010 | Digg This Article