Stocks..

Nikkei…is putting in a bottoming formation with an inverted head & shoulders on the daily charts. Last nights low of 12,990 has to hold for this pattern to be correct.

Bonds…

30 Yr….can rally to 141.08 ( Sept.) and reject.

FX…

AUD/JPY…91.86 is the 200 day and will be a pivotal level for more upside.
EUR/AUD…needs to maintain under 140.19 for lower retraces. Short swing support
is 139 followed by 138. This will take a close below 138 to break trend.
AUD/USD…95.60 is first mvg avg resistance followed by 96.30

Commodities…

Oil…the upside remains the same
Soybeans…need a close over 15.50 for higher

General Comments or Valuable Insight

Yesterday we saw outside reversals in the TBT and TLT, however you did
not see that pattern confirmation in the Futures, which I need to see for confirmation.

The feature the rest of the day will be the AUD/USD and how far the profit taking will go. FX traders…match up any highs or lows with the crosses for confirmation of trad able levels.

Short term, Aussie holding breaks should be deemed positive Asian
equity markets. We need more evidence that this is more than just
profit taking after from a big move, relieving directional RSI pressure.

Time Frame trading today. Look for one distinct capital flow when Chicago opens into London’s close. Then wait and see how the things set up for the afternoon.

Bigger trades start setting up next week

Note…we always write a stop with any instrument we‘re interested in. As the instruments become profitable those stops should be raised to your entry level so you don’t lose money.

Short Term View…

Use the Chicago openings to help guide your trading.

Given the price action late last week in the Equity indices, short term breaks will find
willing buyers.

Trade the market on your terms and at the # sets. Don’t worry about missing a trade.