First a utilization note to our shorter term clientele that have recently joined up.

We write levels we feel will encounter significant price rejection the first time into the # set. These levels also act as pivots. The levels can have a profound effect on other asset classes. Instruments and levels vary as to what we think will lead on a particular day.

For the active day trader you can use these levels several ways. For example: if I’m scaling out of a position, “taking profits to pay for a trade at an area I feel is significant” , one strategy might be to get 100% out. Some professionals might flip their book looking for a trade the other way. The levels are great for the shorter time frame Professional trader looking for reversals, expecting price rejection the first time into a zone. Many clients just take all the money, say thank you, and start all over again another day. To each his own.

This comes with the usual caveat “the more times to a level the less likely it will be profitable to lean on the level.”

There are many effective styles of trading. Just Note, I write One Way for trade recommendations. Trades are recommended for the guy on the golf course, so we do not continually flip our position but rather trade from a side. This client subset does not live at the trading screen and they do not wish to be extremely active. That said, I could be all Risk off one day and Risk On the next for my shorter time frame guys.

The majority of our clientele trade from both sides of the market with relative high frequency.

Second if I am looking at a particular instrument why aren’t you? We will zero in on an instrument we believe will have a significant effect on other assets.

Last our directional bias might differ from our clients, so we write the levels we feel are significant. The vast majority of our clientele make up their own mind as to strategies and trades which fit their outlook and time horizon. It is our job to be objective and provide reasonable risk parameters.

Today….The Aussie started down last night screaming Risk OFF! We were stopped out of our remaining longs early.

The Aussie led, everything else followed. Stocks down/ Bonds up.

Europe came in and the game changed…Time Frame trading…Just glad I was asleep!

30 yr. Bonds…A close over 143.05-10 will change the Board to Risk Off. A close under 141 should lead to more Risk On.

S&P 500…1243.50 is the top of the short term technical resistance zone stated yesterday. Pretty much everything now needs to rest and regroup for new moves to manifest themselves.

http://yrah53.wordpress.com/….I recommend reading Yra for all subscribers.

Model trading Portfolio…Current Holdings

Long SSO

Long TBT

Long S&P 500 Futures/Short 30 Yr. Bond Futures.

Long AUD/USD….Stopped out last Night

All stops are as previously stated.

All trades have been paid for. Meaning, we’ve taken partial profits. Whether or not we get stopped out, we still make money.

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 want to see the S&P 500 Futures hold this 1206 ish level on a closing basis or we will reevaluate our view.

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.