It’s all about the Dollar. The Dollar is off against all major currencies from the Mxn Peso,Ruble,RAND, KIWI,SEK,NOK SING,YOU NAME IT…

Significant levels…

EURO/USD….145.20ish….144.50 close

AUD/USD….110.14 = 2/3 rds coming back for life of Currency…possible double top area on the qtrly

USD/CHF…..79.90 tgt

USD/CAD….93.50 tgt

The above levels bear close scrutiny today..These are major Number sets that can either reject or lead to a rout of the Dollar. We are not chasing direction. You have to let this play out.

Stick with the game plan in the Canada and take another 25% off around 93.60 USD/CAD.

One interesting observation this A.M. is that the metals had no significant sell off while the world bought any currency they considered SAFE HAVEN last night, which was pretty much everything!

Stocks…BP posted bad earnings…We’ll stay with this position as long as there is no close below 45. Stock Indices will continue to be held hostage to Washington’s Drama. I would expect a good rally on a positive resolution of the Debt Crisis. The question then becomes do we sell that rally?

Model Trading Portfolio…Current Holdings

Long

FXC… ETF…USD/CAD

CAT…BP