We have a small Risk On Portfolio.

Confirmation will be signaled by the Bunds ( German 10 Yr. Bond) closing the week below 136.56, and the 30 Yr. U.S. Bonds, which need to close below 139.07 DEC. The U.S. 30 yr Just put in a double bottom from yesterday @ 139.16 which begets the question “Is this another rally to nowhere in the Equities?”

Now we are close to the upper end of the trading range with another 2 1/2 day move. Price action below 1176 is needed in the S&P for more weakness. This is still a sell the rally buy the break market until proven wrong.

Model Trading Portfolio…Current Holdings

Long TBT

Short 30 Yr. Bond Futures

Long JJG

Long OXY

Long 3M

Long BHP

Long FXI

Long IBM