Spu’s…The June (M) contract is trading at a 6 dollar discount to the front month March (H). Price action will revolve around 1377 (H). Maintaining above 1377 (H) will keep the equity indices on a firm footing. ” More Risk ON”

Gold…1683-85 will be the hold level to watch after the Fed comments today.

General Comments…

Mostly, the the levels remain little changed across the other instruments we have been following. This qtr has provided some big directional trades in the Currency Crosses as well as the Stock Indices in a big Risk On Show.

Short term traders, you know the drill…trade what you see…

Longer term guys..minimally, I’d expect the sleigh ride to follow through into next week, then we’ll start looking for new opportunities.

Model Trading Portfolio…Current Holdings

………………                               Stop Close             Profit Points

Short EUR/USD                         134.10                  130.00

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.

We’re going to be eyeballing a “possible” Long over the next couple of weeks via either the 30 Yr. Futures of the TLT ETF. We will be monitoring the Spu/Bond spread to confirm a trad able level. While the markets could certainly turn at month end, the week after could provide the better opportunity. Since we only trade what is in front of us,we’ll wait for a proper setup to initiate.

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.