Sep '09 Bund ** Neutral Transition **

[JS Services]

- Technically the MKT has the potential for a positive turn. Opportunity exists on both sides, however there is a better chance of an acceleration to the upside if the integrity of the previous session low remains intact. On the SELL side avoid UP and DIR FADE strategies until after the previous session low point has been broken. Until then, a better opportunity will be a UP REVERSAL strategy. The idea is that the transition trade is over and a negative shift back into a NEUTRAL DIGESTION is expected. DP BREAKOUT strategies can be profitable but they are aggressive. Risk less, go for more.

- On the BUY side accept BREAKOUT, FADE and REVERSAL strategies with the expectation that the current positive transition will continue. Keep aggressive position management on UP BREAKOUT strategies as the MKT is still in the neutral zone and has yet to commit to a new trend. A more conservative strategy would be to wait for negative reactions after a positive signal to FADE the DIR.