There is a reason we mainly trade futures and not ETF’s. The last 2 days should make it very clear. The SNB reversed the world currency flows off the support levels put out yesterday a.m. in the weekend special..

SPU/BONDS…This spread was one of the main reasons why I advised equity futures shorts to take money yesterday. This spread is at an important area. We already had a small bounce. We will watch the price action for a while to see if we can continue down in this spread. ( Short Equities/Long Bonds)

The 30 yr. Bond futures have put in a multi-year double top @ 142.28 level. Long term investors with big Bond fund holdings should buy a little TBT this A.M. to do a partial portfolio hedge. This level will be key in running equity index weakness. All new strength is needed over this level to think the stocks will start another leg down from here.

Equity shorts…We are taking our holdings down to 25-30% of our original positions.

From a fundamental bent, you should start to get chatter about a jobs package out of the White House. This will make selling weakness in the equities hazardous to your balance sheet over the next couple of trading sessions.

Gold…Gold has to close today above 1874 to avoid profit taking.

Why do we trade?…To make money!

Model Trading Portfolio…Current Holdings

Long GDXJ

Long SDS

Short S&P 500 Futures