Today will be all about price action. Do the Spu’s hold and rally back

with the bonds continuing their upward march in yield? This in turn would

be price positive the oil patch ect. Risk On.

USD/JPY…84.40 is the major hurdle for lower Yen ( app 17.05 YCS)

If we become convinced that the correction from yesterday in the Metals,

Miners, and Spu was a 1-2 day affair we’ll put on some more risk.

This would entail selling the bonds and possibly picking up some miners

and precious metals.

The only currency position is short Yen.

I tend to get very conservative when the stocks break. This is why

we took off a piece of our bond shorts yesterday in the advent of a flight to quality

which would cause the bonds to rally.

Short term traders should be selling every point or multi -point rally

in the bonds until they drop dead! Check with your local technician

for trade location.