It’s a Risk Off World!

There are just too many factors weighing on the markets. We’re all cash and we’re staying that way!

Investors who wish to bottom fish in the metals should wait. There is every fundamental reason for Gold to go higher and only one for it to go lower ( Margin). Gold may become the last ATM machine to dispense cash.

General piece of advice…MF Global has turned many winners into losers with their shenanigans. Many market players will try to create trades this time of year to achieve returns. BAD IDEA!

There are only a couple more weeks left in the year for semi liquid trading. Market moves can be exaggerated due to lack of liquidity. Those who have not done well this year will be pressing to get returns.

If we see something that is low risk we will put it out.

Model Trading Portfolio…Current Holdings

No positions

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.

Medium Term View…
We believe the political and economic risks are now heavily skewed to an all cash portfolio. The markets will become a big day trade.

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.