The U.S. Equity markets are still a slave to the E.U. drama.

The British Pound and Swiss Franc are strong against the Euro on the crosses this a.m. This is a reflection of skepticism that this weekend’s summit will provide a tangible framework for sorting out Europe’s mess.

Volatility is contracting, so far we only had a 45 point range in the S&P this week!

Model trading Portfolio…Current Holdings

Small short AUD/USD…

Medium Term View…

My medium term view is that the Equity market has put in a bottom for the next few months at 1070 SPU. I’ve been waiting for the past 2 weeks to re-load my longs around the 1163-71 area based off S&P 500 Futures for a rally into year end.

Metals…Looking for weakness into the first week of Nov.

Then I’m looking to get my long term guys back in for a longer time frame buy and Hold. They presently have no positions.

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.

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