What the heck was that all about? I doubt that our 98.44 downside target was front-run, but an otherwise moribund TLT did in fact trampoline from a 98.85 low that missed the forecast by more than a mere whisker. Now, if the manic bounce reaches the green line (x=102.57), that would test our appetite for ‘mechanical’ signals, since this one would imply a shorting opportunity with high odds of success. We’ll consider buying close-in put options if and when that happens, but for now stay chill. _______ UPDATE (Jul 19, 11:45 p.m.): I have no appetite for intercepting this freakish rally in T-Bonds, but I’ll be curious to see whether the bearish pattern’s point ‘C’ high at 103.95 holds. The mechanical short is not exactly ‘textbook’, since the grinding B-C leg sapped the energy from bears after they created a strong impulse leg in the last two weeks of May.