Today we find the board in profit mode after yesterdays monster Risk On asset chase.

Outside reversal months to the upside ? A partial list.. DJI,S&P,NASD, DIG,XLE,CVX,OXY,GOOG,CAT,GS,XLF,RKH,EEM,FXI,

You get the picture…now the monthly pattern is showing confirmation of the bottom put in Oct 4.

Things rarely go straight up or down without a rest. The overnight price action is just showing the pressure relief from an overbought condition.

The market is due some consolidation after this run up, however I just don’t think it will go very far going into month end. In other words, look to buy the hard breaks today through Monday’s close in Risk Assets if you are short term trading.

Model Trading Portfolio…Current Holdings

No positions

Medium Term View…

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. Now the two buy levels we are looking at will be much higher, 1248 ish and 1215. It looks like the 1160’s will have to be filed for future reference.

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.

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.