TNX took off like a bottle rocket for a second day, overcoming its 50-day Moving Average at 25.87 and mid-Cycle support/resistance at 25.92. It should complete Minor Wave 1 of (3) near the hourly Cycle Top at 26.73.

This is Primary Cycle action and it may not be over until July 25 to July 29.

The suggested decline has come to pass. It also appears that TLT may continue its Wave 1 decline to its Cycle Bottom at 110.30 before a sizeable bounce ensues.

LIBOR also had a breakout above its Wave 1 high and appears capable of moving much higher. Libor not only tells us about the risk levels about the general market, but also the trust level among banks.

We all know about the $340 Billion reverse repo submitted to the Fed for quarter-end bank window dressing. This may reflect the fact that now the banks know that the problem of insufficient collateral is systemic.

If so, LIBOR may rise to its Cycle Top at .1718 in very short order.

Regards,

Tony

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As a State Registered Investment Advisor, The Practical Investor (TPI) manages private client investment portfolios using a proprietary investment strategy created by Chief Investment Officer Tony Cherniawski. Throughout 2000-01, when many investors felt the pain of double digit market losses, TPI successfully navigated the choppy investment waters, creating a profit for our private investment clients. With a focus on preserving assets and capitalizing on opportunities, TPI clients benefited greatly from the TPI strategies, allowing them to stay on track with their life goals

Disclaimer: The content in this article is written for educational and informational purposes only. There is no offer or recommendation to buy or sell any security and no information contained here should be interpreted or construed as investment advice. Do you own due diligence as the information in this article is the opinion of Anthony M. Cherniawski and subject to change without notice.

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