More of the same, the day trade continues, disappointment with Eurocrats leads to a risk off A.M. London session.

Today’s Risk off has manifested itself in Dollar buying vs. equity weakness.

The weakness in Gold & Oil looks to be the result of players in need of liquidity.

EUR/GBP… 84.60-84 is the level to watch today. Closing under this area would signal more Euro weakness. Selling Euro weakness and expecting to get rewarded with this cross at this level is not advisable, however good closes below this area will lead to another round of Euro selling.

Short term traders, as always pay attention to your time frames, the afternoon can be very different than the a.m.

Focus will shift to retailers online sales later today.

Model Trading Portfolio…Current Holdings

No positions

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.

Medium Term View…

We believe the political and economic risks are now heavily skewed to an all cash portfolio. The markets will become a big day trade.

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.