Please re-read Monday’s and Wednesday’s A.M. look. The levels I write are static “they do not change” Keep them in Front of you!

If you wear glasses, put a “post it” on your nose guard with the numbers on it.

We’ve rallied to hit MAJOR RESISTANCE in the Euro & NASDAQ late day yesterday. Areas like this require prudent investors to lighten their load to see if follow through is possible.

It also provides a low risk scalping level for Contrarians.

Follow through almost always comes with some type of a reaction off these types of levels the first time in, Particularly when an instrument has traveled a great distance to reach the level. ” In this case, 100 points in the NASDAQ and over a figure in the Euro.”

Now we have to see how the markets react to these levels. Do they break a little and hold? Or is that it and we implode? This will tell us if the bottom is indeed in, or we get another trip to the cellar.

Closing above these levels creates a whole new ball game.

The 30 Yr. Bonds still needs sustained price action and a close under 143.10 ish for further stock strength off the SPU/BOND spread.

We have a Risk On Bias. Meaning, we are treating the market as having bottomed and are looking to see if and where the breaks hold.

It takes more than one day’s price action to change a trend! Be watchful.

All investors should keep tight risk controls on all assets purchased over the past 2 days.

Gold & Silver…The only reason I didn’t buy them yesterday,” I had previously been getting smoked” initiating longs on mid week rallies. I will wait for tomorrow to reevaluate.

Today’s metal strength is a function of Euro and Pound weakness ahead of their respective Central Bank meetings this A.M.

Model trading Portfolio…Current Holdings

No Positions