Dow to go Higher, Bonds to Drop Lower

Hi everyone,   I know its been awhile since I last updated the blog but wanted to add some thoughts on what I see happening in the market.  We've been on a constant rally with the Dow, and after witnessing Gold sell off about 300 points in 3 days it goes to show you the markets are never dull right?   I hope you were able to catch some of Golds historic move to the downside and that you pocketed some nice cash.. :)

Today I want to highlight that it looks like the Dow is going to continue higher and break its high and continuing moving higher.   But the trade to watch and is something I trade myself is to short the 30 year T-bond as this typical correlated instrument will usually be inverted to whatever the Dow is doing.   So for myself instead of chasing the Dow I believe its a better trade to short the Bonds, with a tight stop at 5 ticks and open target (but no more than 32 ticks as the baby will more than likely reverse outside of 32 ticks)
Watch for a bid up,  and/or sell off some support or a pull back to catch more of the downside move if you like.

Also,   be aware this Friday is Non-farm Payroll and looks to be a pretty volatile day.  So be careful out there trading!  

Have a great week,

-david