Gold & Silver…yesterday’s lows were great in both. Now we have to see if we hold those lows on the unemployment #( which have typically been the lows for the rest of the month). Moreover, the gold needs to close above 1663.40 and the Silver above 39.30 to keep the current chart patterns in tact. When unemployment lows hold,that generally leads to much higher prices.

SPU/BOND… spread is getting very stretched. We’ve come a long way in a short time. We’ve hit my tgt levels in the S&P @ 1188 and the 135 handle in the Bonds.

I have no great insight into the price action this a.m. If they press this spread the rest of the day I would be out by the close and take a fresh look next week.

For the market to turn I think it would need the weekend and some adult behavior from politicians on both sides of the Pond.

As an aside I spent a most pleasant and insightful few minutes chatting up former Senator Sam Nunn while we were stuck together in the Denver airport. He was in route to a cyber terrorism conference in Aspen . We started talking markets, I tend to do that. He thought Simpson -Bowles was a balanced solution and should have been enacted. However, we both shared the same view that the intractable fringes of both Parties were determined to destroy the country one way or another. Not being flown around in those PAC G4’s anymore is a bitch!

Model Trading Portfolio…Current Holdings

LONG

YCS…FXC small residual position left

Most investors are out of all positions.