Unenjoyment Friday…I am already dusting off my trading blindfold and mail gloves ( so I can’t click the mouse).
Metals…typically a big day for direction ( usually significant highs or lows for the month). Gold would have to hold around 1675 the first time down, and then close back above 1684 to want to own it here.
Spu’s...1353-55 is the support level the first time down. The FXI & DAX all have similar chart patterns, so check out your maps.
Day Traders…Trade what you see..if you make it…take it!
General Note…
The levels we write are static, (They’re macro levels which are constant), If we don’t update them, it means that the zone is still valid. You should keep these areas in your alerts.
Model Trading Portfolio…Current Holdings
……………… Stop Close Profit Points
Long EWH 17.30 intra-day
Short EUR/USD 134.10 131.50/130 70
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.