Platinum…leads the metals. Last night’s high (1711) was the major 2/3 rds Fib coming back up on a 4 year swing. It’s a big big level! Remind yourself that the Platinum has just rallied $300 in a few weeks. This instrument has been a key “Risk On” Indicator!

30 Yr. Bonds…140.21-23 is the bottom of the recent range, with stops below. The Bonds have been moving in 1 point increments. Pay close attention to the Spu/Bonds for the next move.

Oil…point & Figure charts show price action under 104.75 can lead to a deeper sell off.

General Comments…

The end of this month many things are coming to a head, particularly in Europe. Read YraHarrris.com for the FYI. I find it interesting that many market timers as well as the astrology crowd ( those that trade off of planetary alignments) are all looking at the same approximate dates. Really, don’t laugh, if enough people believe it it can create it’s own capital flow. Hey, it’s a big world and it pays to pay attention.

Let the mid week shuffle unfold.

We’ll update our stops a little later.

Model Trading Portfolio…Current Holdings

………………                               Stop Close             Profit Points

Long XLE                                  71.60                         80

Long OXY                                 102.40                      110/117

Long USO                                 37.80                         44

Long Oil                                   100.50 intra-day        105

Long Canada Dollar Futures       99.54

Short USD/CAD                        100.50

We’re at a 30% Long in the above instruments.

Long GLD

Long Gold

Long GDXJ

Short Term View

Location ,Location,Location….if you have a good trad able pattern “Good Risk reward!” You just have to seize the opportunity and see what develops!

Trade to Make Money!

Medium Term View…

30 Yr. Bonds …147 is the all time high in the front month futures. We will watch price action off this level for any potential surrogate moves in the currencies or stock indices. 144.20 ish now becomes our macro pivot. All new closing strength over 145.20 would have us looking for more upside in the Bonds. Closing above this level would be short term positive the Bonds and negative the Equities.

Equities…We will continue to strategically buy hard breaks in Etf’s and individual instruments we feel have the best risk profiles going into the end of the first qtr.

Currencies…Our view is the Aussie Dollar remains a most attractive investment. The Bonds are high yielding making this currency desirable on breaks. It also has the benefit of the underlying commodity and Asian growth story to support buying the dips.

The Aussie typically mirrors the S&P 500 which also makes it an easy surrogate to trade, whether Risk On or Risk off. It’s liquidity makes it easy to hedge currency risk if you’ve the underlying Bonds, which makes you Long Aussie by default.