AUD/USD…101.15 is the next level technical level with stops below.
The macro pivot of 102.15-25 does not change. This is the level to sell rallies
against to manage risk.

EUR/AUD…128.92 is last weeks high and now becomes minor short term resistance.

AUD/CAD…102.25 is support and an area to not press direction in this cross. It is over sold on the daily time frame and we would expect some type of reaction from this zone. This is an area to lighten up a position, not initiate.

Bunds…144.85 close is the level that will dictate the next move. This is a big pivot for German rates.

General Comments or Valuable Insight

The beat goes on…we’re seeing the buying of Equities and the selling of Treasuries in both Germany and the U.S. overnight. DAX/BUND…SPU/BOND spreads are firm.

Precious Metals…when the above spreads are moving up there is absolutely no incentive to own Gold or Silver. Why?…They don’t pay a dividend. We’ve written the levels Friday and yesterday.

Game Plan…

Remains the same…Sell rallies until proven wrong in the U.S. & German Treasuries… while buying breaks in the Equities until proven wrong.
Short Term View…

Use the 4/30/13 closes for your short term pivots in everything!

Medium Term View…the qtrly update is out. This update is provided exclusively to current subscribers and will not be posted on our site until mid-June for general review.