So far the Spu’s held right where they needed to @ 1221.50 for another bounce.

Confirmation of the level was given by the commensurate matching levels in the Aussie, AUD/JPY, EURO and OIL all holding macro support levels yesterday into last night. These were important levels to be reached and to hold.

IF and when we breach those levels we can see another swing to the downside.

For our new clients, the levels we put out are static ” they do not change”. It is a good idea to put these levels into your system via an alert function, so you can take a look at what’s going on when we hit these areas.

The more instruments hitting and holding these types of numbers at the same time creates a high % situation for markets to stop moving in the direction they have been traveling and reverse direction, for at least a contra-trend trade.

Gold…Price action back over 1675 will confirm last night’s low of 1655 as a great place to manage risk against for any buyers. In other words you can buy breaks against this level with a very tight stop.

Retail sales is out this A.M. Let’s watch to see if this will add fuel to keep this bounce alive for the rest of today’s session in Risk Assets.

Grains…Time to start watching this complex again. I like yesterday’s lows. When the reflation trade goes into full swing this will be an asset class ripe with trading opportunities.

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.