The equity markets still favor buying the hard breaks.

Last night they tried them both ways. 1253 is last years close in the S&P Futures. The low 1270’s is the most we would look for on a rally early week.

The Bund level of 134.20-40 should be monitored. Holding this area should lead to equity weakness, however, closing and sustained price action under should be a precursor of further equity strength. The Bund could then trade toward 130.00. 135.80-136 has been resistance. Similarly, price action above this level should have a negative effect on stocks.

Over the past couple of weeks, the Stocks have not broken to the levels we’d like to initiate a long term buy. What can I say, so far we’re just not being shown any love.

AUD/USD….Last night’s high was weekly resistance ( 104.25). App 103.90 is the 200 day mvg avg. Watch for market tone…The Aussie has been moving in step with the Stock Indices.

The trading of all instruments still remains highly technical in nature.

Model trading Portfolio…Current Holdings

No Positions

Medium Term View…

Equities

Our medium term view is that the Equity markets have put in a bottom for the next few months at 1070 SPU. We’ve been waiting for the past 2 weeks to re-load our longs around the 1163-71 area, based off the front month S&P 500 Futures, for a rally into year end.

Precious Metals

Looking for weakness into the first week of Nov. Then, if the technicals agree, we’ll re-purchase the metals for a longer time frame portfolio buy and Hold for our private wealth clients.

Bonds

30 Yr. Bonds …I’m treating 147 as the high for a long time. We’re looking to sell big rallies for the foreseeable future. This includes hedging strategies for our private wealth crowd that have Bond Fund exposure.