Metals…Stops in the Gold should be resting @ app 1596… Silver could probe down to 29.85-90 or they both may have seen lows put in last night…

Same game..new day…

The Equities and the entire board will continue to be a Risk On/ Risk Off trade based off the He Said/She Said drama between Merkel and Sarkozy…

Day Traders need to pick a level and a side to trade from. There is just no need to risk much. Be patient for your chart pattern setups and give it a go. Then keep taking money off the table.

Methodology…

Yesterday I picked a side early with 2 handles of risk in the Spu. The market held the area for hours until Oil showed the chinks in that thought process.

I proceeded to sell the Aussie as a total Risk Off hedge against the longs in OXY & SSO ( which had very tight Intra-Day Stops).

Now we had a spread On. One side was going to work and the other side would be stopped out.

Aussie…

Typically I always take some profit on a currency trade after 80-100 points. Why…it’s just prudent risk management to pay for your stop ( bank a little money) Then lower your trailing stop to break-even ( where you entered).

Since I was remiss in writing about this yesterday for new clients, I apologize. Those of you who have been with me for a while know to do this.

The Aussie short is from app 102.80 level “cash.” Use a 103.10 stop intra-day….

If we see 102 again today, buy in 25% of the short trade of to pay for the stop.

Model Trading Portfolio… Current Holdings

Short AUD/USD