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Bonds mixed, but stocks lower

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The shorter end of the bond market is seeing some buying interest today, but the longer-end is back on the sell side as YIELDs there rise. Both the 10-year YIELD ($TNX.X) and 30-year YIELD ($TYX.X) are higher at 4.804% and 5.259% respectively. The 13- week Treasury ($irx.x) that many savings accounts interest rates are calculated from is trading with a 1.9% YIELD.

I view today's action in bonds as bullish for stocks near-term. Today's action in the stock market hints very much of some institutional orders being squared prior to the Thanksgiving holiday before senior traders hit the road come lunch time tomorrow.

ESpeed's goal is profitablility by 4th quarter 2001

ESpeed (NASDAQ:ESPD) the electronic trading arm of bond brokering giant Cantor Fitzgerald LP, says it is expecting to show profits between $0.01 and $0.05 a share in its fourth quarter.

ESpeed Inc Chart -

Since coming public in December of 1999 near $40 per share, ESpeed (NASDAQ:ESPD) has yet to show a profit. But Cantor Fitzgerald's chief executive Howard Lutnick praised the resolve and determination of ESpeed's employees. ESpeed lost 180 employees in the September 11th terrorist attacks, while Cantor Fitzgerald lost 657 of their employees in those same attacks. ESpeed along with Cantor Fitzgerals is one of the most dominant trading firms of U.S. Treasury bonds. Howard Lutnick said, "Volatility in the Treasury markets is what we need to help generate trading revenue and profits at ESpeed."

Jeff Bailey
Senior Market Technician
Option Investor

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