It’s not a good morning for the risk on crowd.

We would have been much happier if we just sold the Euro as a hedge against our portfolio. Short Euro/Long Gold..has been working for a while. Short Euro/long anything seems to be working.

Since we have no short Euro to balance our book we are going to look to Sell the Euro based off the EUR/JPY cross @ 104.70 with a tight stop. “We will send an update if we do this trade.”

Gold…I want to see the Gold remain above 1762 ish…stay tuned here, as well for a further update.

This is not the time of year for hero trading…day traders keep it small and take the 1 or 2 swings you get a day and walk away. Market participants are all exhausted from the last few months of volatility. Volumes will continue to be lighter than normal. The closer we get to year end, the worse the market conditions will become.

Model Trading Portfolio…Current Holdings
Long SSO
Long TBT
Long S&P 500 Futures/Short 30 Yr. Bond Futures.
Long Gold Futures/ and or/ GLD

All stops are as previously stated.

All trades have been paid for. Meaning, we’ve taken partial profits. Whether or not we get stopped out,
we still make money.

For New readers…
We’re very small in the SPU/BOND trade. In fact this is one of our smallest positions all year.
Our view is that the rest of the year will be a high volatility, highly technical, rumor driven, Time Frame, Lemming Effect Day Trade.
The question is who’s day? Right now it’s Europe’s.

We’ve captured  enough big swings in the overall markets and underlying instruments this year to sit back, go to all cash, and wait for ripe opportunities whether we get filled at our price tgt’s or stopped out of our existing portfolio.

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 want to see the S&P 500 Futures hold this 1206 ish level on a closing basis or we will reevaluate our view.

Metals…we’re looking for strength through year end.

30 Yr. Bonds …I’m treating 147 as the high for a long time. 143.10 now becomes our upside pivot. Closing above this level
will be short term positive the Bonds and negative the equities.