The short term technical trades continue. Sector rotation remains violent intra day, with the Stock Indices continuing to creep up.

30 yr. Bonds...probed the lows of the recent range last night. Any sell off in the equities would see this rallying right back to the top of the range ( SPU/BONDS).

CAD/JPY…we’re going to focus on the price action today around 77.63. This is last months high in this cross. Price action up through this level can telegraph more U.S. growth. Courtesy Archives ” YraHarris.com” for the thought process on this one.

We’re looking at buying this cross (Long Canada/Short Yen). We wet our pants last week with the AUD & AUD/JPY before unemployment, then took the trip down the street to Costco to put in a new supply of depends. This one has less volatility.

It’s a good Risk On Indicator.

Model Trading Portfolio…Current Holdings

………………Stop Close       Profit Points

Long XLE       70.40              80

Long OXY

Long DE        85.90

Long COP      67

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.