EURO…135.50-80 on top…133.90-134.14 below( natural support) which is last years close matching Fib support ( half way back from the June 2010 low). Once closing under the yearly close, 132.50 seems the next area to test.

This simply means to keep your track shoes on. There is no selling of Euro anywhere into the lower level the first time down. The opposite applies to the resistance level.

Selling Rip Your face off Rallies in the Euro seems the most rewarding thing to do. This grizzled veteran is too long in the tooth to trade the Italian Bonds, I couldn’t afford the Maalox!

The highs and lows in the Euro are coinciding with the highs and lows in the SPU’s….keep your eye on the ball!

AUD/USD…100.60-80 is interim support..

The entire board is a track meet. Pick a side and an extreme to initiate any trade. Be aware of your time frames. Since I sat down to write this piece, the complexion of the board has changed several times.

Model Trading Portfolio…Current Holdings
Long SSO
Long TBT
Long S&P 500 Futures/Short 30 Yr. Bond Futures.
Long Gold Futures/ and or/ GLD

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.

For New readers…
We’re very small in the SPU/BOND trade. In fact this is one of our smallest positions all year.
Our view is that the rest of the year will be a high volatility, highly technical, rumor driven, Time Frame, Lemming Effect Day Trade.
The question is who’s day? Right now it’s Europe’s.

We’ve captured  enough big swings in the overall markets and underlying instruments this year to sit back, go to all cash, and wait for ripe opportunities whether we get filled at our price tgt’s or stopped out of our existing portfolio.

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…we’re looking for strength through year end.

30 Yr. Bonds …I’m treating 147 as the high for a long time. 143.10 now becomes our upside pivot. Closing above this level
will be short term positive the Bonds and negative the equities.