Stocks..

Spu’s…we’re smack dab in the middle of a 25 point range.
The downside breakout is 1620 sellers.

Spu’s have to go 1631 bid to avoid lower.

Nikkei…has to hold 12,940

Bonds…

It’s all about Friday!

FX…

EUR/AUD… 136.86 is weekly resistance.

Euro…is caught between 131.00 on the upside and 130.20 on the downside.
Which ever way this breaks out of this range, Do Not Fade!

AUD/USD…96.60 is the near term resistance and the short term upside pivot.

USD/JPY…either side of 100 is the death zone for short term traders. No one will make
money trading in this area except the brokers. A close over 100.75 is needed for a higher Dollar Yen.

99.20 USD/JPY is pivotal. sustaining under this level will lead to more Risk off in the Equity Indices. Closing under this level would tgt 97.40.

AUD/JPY…has to recover over 95.75 to avoid lower. 93.60 is the first re-trace tgt for this swing.

EUR/JPY…is rolling over. A close below 129.90 puts in a daily ORL. 129.00 would be the next area to look for a bounce.

Commodities…

OIL…93.50 will act as the downside pivot today.

Corn…we’re waiting for a close over 6.70 to go long.
Wheat…has the best chart pattern of the grains. This has to maintain and keep
closing over $7.00 for the pattern to be Bullish

Gold & Silver…we’ll wait for Friday’s fireworks to do anything.

General Comments or Valuable Insight

Welcome to the mid week shuffle…

DXJ…leave the stop working that’s what it’s for.
We rolled the dice on Abe and he disappointed.

Today will be about where the rallies stop in the Equity indices. The markets
look ripe for more profit taking.

Sell rallies not breaks in the Indices.

Current Positions
Entry           Stop           Targets

Long DXJ            45.40      45.20         47/48.50 

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.
It’s a new month and a new game.