Follow the money…Follow the world currencies against the dollar..

All the major trading currencies held significant support last night in early London.

138.80-139 Euro

98 Aussie

102.60 usd/cad

When the currencies hold so do the equity indices. This is why you have to carefully monitor your

Dollar levels! We’re in a world where every trade is the same trade. You just have to pick your poison ( which instrument)

based on risk and trade location.

I do not see anything on the horizon that will change the present direction going into month end at this point, but you

never know.

What to do? Indiscriminate buying of strength in any instrument is something I do not recommend. The Spu still has yet

to close over 1181-2. Get out your short term technicals today. All you can do is trade from the favored side until the direction

turns. That direction is still up in the equities and down in the dollar. ( buy breaks). On a close over the 1181-2 area liquidate

your SDS hedges.