Whatever you decide to do, it’s always about risk management.

I initially thought you’d see some Equity weakness and Bond strength last week after the big run up, sometime mid-week this week. I just didn’t think it would be this big.

AUD/JPY has been telegraphing these moves. I’ve missed this interim wiggle both ways, and it’s been a significant wiggle.

Today I will be watching

141.10 in the 30 yr. Bond

1215 S&P 500 Futures

1680’s in the Gold

SPU/BONDS….Long Bonds /Short Equities is a key spread to watch today for more stock weakness.

I am going to wait it out until Chicago gets going to determine If the equities can find footing or it’s all Risk Off through London’s close.

You should expect a lot of volatility all week.

Model Trading Portfolio…Current Holdings

No positions

Medium Term View…

Our medium term view is that the Equity markets have put in a bottom for the next few months at 1070 SPU. We’ve been waiting for the past few weeks to re-load our longs around the 1163-71 area, based off the front month S&P 500 Futures, for a rally into year end. Now the buy levels we are looking at will be much higher, 1215.

Metals…Looking for weakness into the first week of Nov.Then, if the technicals agree, we’ll re-purchase the metals for a longer time frame portfolio buy and Hold for our private wealth clients.

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. This includes hedging strategies for our private wealth crowd that have Bond Fund exposure.