It looks like reality is setting in on this equity rally.

The first chink in the Armour was AUD/JPY last night off the 80.00 level. That completed an 8 figure move off the last lows ( an average standard deviation big move). When AUD/JPY is strong it signals strong equities. ( It has been a good Risk On Indicator)

We were looking for the Bunds to trade into the 132 handle. You got it.

The 30 yr. Bonds have got close enough to their tgt for this down move to be pretty much over.

Long Bonds=Short Equities….pay attention to the SPU/BOND and DAX/BUND spreads..

Those of you that are long Equities……This synopsis is telling you the rally is about over for now. If you have existing Longs take the money or tighten your stops.

Model trading Portfolio…Current Holdings

Long EWZ (Brazil)

Long FXI (China)