The even $100 dollar levels in the Gold seem to be sticking areas. 1800 should provide some natural resistance. Given the opportunity, we’ll look to buy a 30-40 dollar break later in the week.

General timing comment…we’ve been seeing 2 distinct capital flows lately. The first is the London opening through it’s close. Within an hour after London goes for dinner and a cocktail, the Lemmings dust themselves off for a run the other way. Markets reverse direction.

Time Frame Trading….let the day unfold.

Model trading Portfolio…Current Holdings

Long SSO

Long TBT

Long S&P 500 Futures/Short 30 Yr. Bond Futures.

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.

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…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.