Best Financial Markets Analysis Article The strong upmove in the Lehman 20 Year T-note ETF (AMEX: TLT) suggests that notwithstanding this AM's strong Jobs Report, the bond market thinks that the economy is inherently weaker, and/or more vulnerable to the housing and credit crunch than most people think.

The chart of the 10-year Yield, which is the flip side of the TLTs, shows that the Yield structure has pressed to new lows at 4.28% on a day that the government reported a much stronger than expected jobs market! Either the bond vigilantes don't believe the labor report, or they are much more concerned about the "rolling and intensifying" credit crisis, or both! In any case, let's notice that a potentially massive top formation could be on the verge of cascading to the downside in what would have to be an indication of a very serious flight to safety into U.S. Treasury paper as protection against more and more fallout in the U.S. (and foreign) financial names. Taken cumulatively, such as situation could very well be creating perceptions of instability in the global banking system.

By Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction

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