We sold puts this morning, rates have fallen as bank earnings news gave the market cause to sell off. Continuing to remain correlated to stock market moves, the 10 year note rates also fell, giving us the opportunity to establish our first June position. We just executed a sale of call options.
As I mentioned on Friday, I thought that the price would remain in the pennant and it did. But now, I see that in this moment, the price could hold the 4-day moving average (also a three day test of the low) and tomorrow break out and begin a move to the upward limits of the channel that is defined above.