Night Owl Trading.

The Spu got the stops under unchanged on the year ( where it closed Dec 31/2010) This is significant for all those buy side private wealth managers whose mantra is to just buy and average forever. They are now bending over and are white knuckled to the porcelain rim preparing to be inundated by angry clients who are now down big money once again.In our one on one conference calls we’ve repeatedly told our clients that this trip to unchanged was going to happen and to prepare a shopping list of quality names, it always does!

This is an event driven trade and I think there is still some more downside left. I would not entertain any longs until the Spu is closer to the 1200 level.

The 30 year Bonds reached my first objective of 124 (H) last night.

USD/CAD…100.12 is the big key closing level to be challenged. A monthly close above 100.12 would put in a major top in the Canada.

Crude…96.97 (J) is last months close. If we run those stops which is highly likely you’ll see another 50 cents and could well tgt 94.77

The metals complex is being hit along with the grains as Margin Calls and the need to raise cash will likely continue.

You’ll get opportunities both sides during the day, however more negative Radiation news will lead everything lower.