Oil…100.55 close now becomes a similar level to 105-105.31 All new closing strength is needed over these levels for new upside.

Brent shows the same pattern with new closing strength back over 112.20 needed.

Short term sell stops are 98.30 in Crude ( WTI) and 109.50 ( ICE Brent)

The closing game will continue to be 99 in the WTI. Expect a lot of short term money to be lost positioning around that level.

Spu’s…this is the same game as yesterday, above 1296-97 it works higher, below 1281 it goes lower.

Stick with the game plan here, new highs will likely have us sell out our long SDS and remain long the Grains and Moo.

Gold…1652 is short term P&F resistance…Support 1636…In short it looks stuck for the moment.

Currencies…

AUD/USD…Looks like this needs price action under 102.60 to rollover. The upside remains the same here as well as AUD/JPY

Euro...This needs to set up again with further price action.

USD/BRL…This has hit short term Dollar Support, it’s getting mildly overbought vs. the Dollar and has hit Fib resistance. I always like to keep an eye on this for possible Grain signals.

Model Trading Portfolio…Current Holdings

Long SDS

Long JJG

Long Moo

FOR YOU HAMSTERS ALL IN A ROW…

“Below is a re-posting of Utilization Notes for Clients just joining us.”

A.M. Look 11/3/11…W/Utilization Note

Posted on 11/03/2011 at 6:11 AM

First a utilization note to our shorter term clientele that have recently joined up.

We write levels we feel will encounter significant price rejection the first time into the # set. These levels also act as pivots. The levels can have a profound effect on other asset classes. Instruments and levels vary as to what we think will lead on a particular day.

For the active day trader you can use these levels several ways. For example: if I’m scaling out of a position, “taking profits to pay for a trade at an area I feel is significant” , one strategy might be to get 100% out. Some professionals might flip their book looking for a trade the other way. The levels are great for the shorter time frame Professional trader looking for reversals, expecting price rejection the first time into a zone. Many clients just take all the money, say thank you, and start all over again another day. To each his own.

This comes with the usual caveat “the more times to a level the less likely it will be profitable to lean on the level.”

There are many effective styles of trading. Just Note, I write One Way for trade recommendations. Trades are recommended for the guy on the golf course, so we do not continually flip our position but rather trade from a side. This client subset does not live at the trading screen and they do not wish to be extremely active. That said, I could be all Risk off one day and Risk On the next for my shorter time frame guys.

The majority of our clientele trade from both sides of the market with relative high frequency.

Second if I am looking at a particular instrument why aren’t you? We will zero in on an instrument we believe will have a significant effect on other assets.

Yesterday, MCP had a lower risk profile vs. the Copper futures. Hence, we mentioned it as a better place to play. The high in the Aussie lined up with a pretty good short term high in the Equity Indices early, which was a big part of our SDS rationale.

Last, our directional bias might differ from our clients, so we write the levels we feel are significant. The vast majority of our clientele make up their own mind as to strategies and trades which fit their outlook and time horizon. It is our job to be objective and provide reasonable risk parameters.

Posted on 10/14/2011 at 4:08 PM

Utilization Note…

We try to write levels in instruments that we feel are germane to the capitol flow of the entire board. In other words, a particular number or level which we feel will effect a wide array of asset classes, minimally over the course of the day, sometimes much longer.

Price action in one instrument begets a reaction in others.

The point to this missive is that there is something for everyone in what I write on a daily basis. Depending on your specific goals and time frame outlook, you can find actionable trades with limited risk or just use the work for reference for a longer time frame set up.

Successful investors are not myopic or one dimensional. Look around the board to see what is running the show. As a trader you can generally find a low risk alternative ( ancillary) trade.

We endeavor to pick an instrument and a commensurate level which we feel will have the most impact on a daily basis.

Of course we miss some, but we catch more than we miss, and we write what we see.