We went short the equities yesterday. At this point, our risk is negligible to see if this can turn into more than a 1 day sell off.

Same stops as yesterday.

Canada has re-tested the reversal level of 101.02 USD/CAD and rejected the level. You would think this would signal lower growth= a weak tone to U.S. Equities.

The Flip side is that the Aussie is holding the 103 pivot area for the past several weeks…This is positive U.S. Equities.

This looks to be another day where you’ll get opportunities from both sides of the market in most instruments.

Model Trading Portfolio…Current Holdings

Long SDS

Short S&P 500 Futures

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 few 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.