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VORTEX STRATEGY (BONDS)
Copyright © 2001
Trade Recommendations for: Monday 5/07/01

Previous Bond Close (USM) 102.11

Market Observations: The Bond 100 price level has held. We will now wait for a high probability trade to enter for the BIT (intermediate) and the BLT (long-term), excepting the BPT (day trades) for day trades. Crude Oil, Gold and the Dollar all acting fine. Let’s Buy more Crude and Sell more Dollars. Also, another big-trade this week, the DOW, check below.

BOND TRADES

BPT (Bond Pivot Trades) (USM): You are flat. Sell 1-unit at 102.22 and Buy 1-unit at 101.17, or exit MOC. (Day Trade)

BIT (Bond Intermediate Term) (USM): You are flat. Buy 1-unit at 101.14 OB.

BLT (Bond Long Term) (USM): You are flat. Buy 1-unit at 101.14 OB.

These orders are scheduled for the (CBOT) Bond Market. (Day Session 7:20AM to 2PM, Electronic Session trades from 8PM to 4PM EST). Trades are scheduled for all sessions unless indicated.

BOND TRADES DEFINED

FLAT: You have no positions in the market.
LONG: You have bought Bonds and expect the market to trade higher.
SHORT: You have sold Bonds short and expect the market to trade lower.
sMOC: Market on Close.
MOO: Market on Open.
OB: Or Better.
RSS: Reverse Sell Stop.
RBS: Reverse Buy Stop.

IMPORTANT NOTE: BPT trades are intended for those that have a need to be in the market every day, pros and floor traders, who can also trade against the hard spots disclosed. BIT trades are for everybody with the idea that we will hold the position overnight.

BLT trades are for those investors that are well capitalized and are willing to sit with a position for several weeks or months with the understanding that at times the market may significantly move against the trade. Those that are new to this service should begin by trading the BIT. Well capitalized investors should hold positions in both the BIT and the BLT. Remember, lower capitalized traders must be out on the close, if the new market position is negative by the close.

BPT (Bond Pivot Trade): Short-term scalps; expect 4 to 21 ticks, day trades, if target not hit then out on close.
BIT (Bond Intermediate Trade): Either a pivot trade or a trend entry; expect 2 to 13 days and profits from 14 ticks to 1.5 points. Trade may be pyramided.
BLT (Bond Long Term): Either a pivot trade or a trend entry; expect 1 to 7 weeks for a 1.5 to a full 5 point profit. Trade will probably be pyramided.

Disclaimer: Futures trading can entail a high degree of risk and are not appropriate for all investors. The Vortex Trades of the day are strictly my opinion. Any actions taken by any readers is for their own account and risk. Opinions, market data and recommendations are subject to change at any time. Past results are not necessarily indicative of future results.

Speculative Bonus Trades offered with a high degree of profitability after substantial analysis, but as usual no guarantees.

GOLD PLAY (Long Term Trade)

You are long 3 positions of Gold (GCM). Things look good for the play. Market is targeting the 276 price-level. The possibility exists, though, of a correction to 264.50 but it is not necessary to worry, market is acting fine. Carry protective-sell stops on all at 256.90 stop. Trading Hours: Electronic 4p-8a, Day Session 8:20a-2:30p EST)

CRUDE OIL (Bond Intermediate Trade) (CLM)

You are now long 2 units of (CLM). Vortex is calculating 30.50 for the near-term move, then 31.50 and after that you all know my target is for 50. (Yes, you will see $3.00 gas/gallon at the pump).

Let’s Buy another unit of (CLM) on a stop at 28.71 stop.

The Sell stop for all is 26.74 stop. These orders should be working in all sessions. (Trading Hours: Electronic 4p-8a, Day Session 9:45a-3:10p, EST)

US DOLLAR INDEX (Bonus Intermediate Trade) (DXM)

The dollar is targeting 113. Let’s Sell another unit at 115.09 OB.

You are currently short – 2 units. Use a protective Buy stop for all shorts at 116.33 stop. (Trading Hours: Electronic 7p-10p, Day Session 3a-3p EST)

DOW JONES INDUSTRIALS (DJM)

What an unbelievable fake-out on Friday, a limit-down open and then a rally all based on short covering. This is typical of the stock indexes so you must be very careful with selling into the rally.

Your Guru here has learned this, the hard way. It is now time to sell short for well-capitalized accounts. I don’t expect the break on Monday but it should give us the high for a down week.

Actual break should start Tuesday. I am expecting a slightly lower close Monday. Maximum high is at 111.20/60 (DJM). The previous close was 110.06. This trade should also work in conjunction with higher bonds.

The Market is entering the Vortex Death Trap! It is still a little early for confirmation but I see no reason why not to begin putting shorts out.

Sell 1-unit at 110.06 OB and another at 111.20 OB. Protective Buy stops at 113.25 stop. (Trading Hours: Electronic 8:14p-4p, Day Session 7:20a-3:15p CST)

Good Trading,

“CASH”
(For questions email them to me at cash@bondtradersbestfriend.net)

Please also see: Disclaimer

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