The way the board is setting up today from the overnight action there should be plenty of everything today in the equity indices. Meaning I think they’ll try them up and down from here, 10 points both ways, with lots of money being lost.

A close higher on the week ( above 1169 SPU) and all residual short equity positions should be liquidated.

Bonds…it remains to be seen if we caught the stone cold high in the 30 yr. futures or not. In keeping with our methodology, pay for your trade this A.M. by Buying 20% of your 30 Yr. Futures shorts @ the market. ( selling 20% of your TBT on the opening)

The Gold is starting to increase volatility with $100 moves. The daily action is reminiscent of the type of price action we saw in 1979-81. This will be a great short term day trading vehicle for the professional trader.

Let the day unfold…the really big moves have all been in early Europe over the past few sessions.

Model Trading Portfolio…Current Holdings

Long GDXJ

Long SDS

Short S&P 500 Futures

Long TBT/ Short 30 Yr. Futures