By Tom Dyson in DailyWealth:

Two weeks ago, GM declared bankruptcy... and the S&P 500 rose 2.6% - one of the best rallies of the year - after the news came out.

How could the stock market rise the same day as one of the world's largest and most important companies declared bankruptcy?

It's simple. The stock market already suspected GM would declare bankruptcy... so the news came as no surprise. As traders say, the bad news was already "priced in." Monday's rally was almost like a sigh of relief from investors that this saga had ended.

Business-school teachers will tell you the stock market is efficient. What they mean is, you can't make money using public information to make trading decisions. Most of the time, that's true.

Here's the thing: Occasionally, the market loses its efficiency and you can make money from public information. I've found one of those situations in the government bond market. Today, I'd like to share it with you...

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Crux note: For more of Tom's trading ideas, check out his new trend trading service, Penny Trends here.

More on investing in treasuries:

Bond King Bill Gross says get ready for soaring bond yields

The No. 1 reason interest rates could explode higher soon...

Top analyst Yardeni on America's dangerous interest rate situation