Stocks..

Spu’s…the Sept Futures will need to close tomorrow over 1597 to hold up
on the weekly charts. This needs a close over 1614.50 for higher

Nasd 100…2888 is the weekly #. This needs to sustain over 3000 for higher
Russell 2000…96760

Bonds…

30 Yr. Bonds…135.00 + a few is matching Fib support.
This is big swing stuff. It’s the first serious measured pullback from the
2007 low and 50% back from the 2011 low.

This is a big technical level that deserves your attention and respect.
Not bouncing and maintaining below this level would see more 30 yr. selling and more equity weakness.

FX…

AUD/USD…91.50 is the first major fib support and tgt from the 2008 sell off.
This is an exit zone the first time down and a place to manage risk for a bounce.

Commodities…

Precious metals…we’ll watch for a bit and let them breathe. This did put in a
30 dollar rally off last night’s Asian session low @ 1268.90. There you go, Time Frame Trading, just shows you not to get ancy and wait for your levels. A breakout to the upside would require sustaining above 1305-10.

General Comments or Valuable Insight

Pay attention to the levels in the Equity Indices for price rejection or some upside follow through.

From a pure technical standpoint many instruments are in need of time ( price consolidation) before you start looking for a bigger trade, which we think is coming closer to the end of next week.

Investors that wanted out are out. Don’t fade the Time frames as evidenced yesterday.
When the lemmings take flight it’s a one way run to the cliff.

It’s summer time in Chi town and it will be just you and the robots trading after London’s close today.

Short Term View…

Trade what is in front of you.

Note…we always write a stop with any instrument we‘re interested in. As the instruments become profitable those stops should be raised to your entry level so you don’t lose money.

Medium Term View… qtrly update

It’s the end of the qtr and there is lots to ponder. We’ve been sending
last qtr’s outlook as a reminder how effective our sheet is to keep you focused on the bigger directional game.

It also helps you to not wet yourself in the wrong zone by puking
in the wrong spot.

If you don’t think they’re valuable just look at the Nikkei levels again.
Nikkei has held our # set since last qtr for four 8% moves in the past 2 weeks alone!