This morning shows 127.19 to be a level of great interest in the (M) 30 yr. Bond. Price rejection at this level could lead to a double top pattern on the weekly. Bonds are getting into overbought territory. If this happens you could see short covering in the equity indices. WATCH FOR TONE. “SPU/Bond spread”. The point & figure charts show the S&P caught in a 10 point range, with 1275 being support and 1286 being short term resistance.

Euro…Support is yesterdays low…let’s watch the price action after the ECB to see if we keep the position or not. Regardless place an order to take some profit just under 147 to pay for the stop.

Grains…time will tell…Corn in particular needs to hold above yesterdays 7.34 low.

PAAS…we will let this play out for a couple of hours and decide what to do.

Current Holdings

Long GLD,SLV,JJG….from much lower levels.

Short S&P 500 Futures or Long SDS

Long Euro from app 145.80 cash

Long Paas from app 30.15

Apparently some of you are Long Corn via the ETF