We’ve been Risk On since early Asia. If you wish to play for a bounce you should use last night’s low’s in the indices or Friday’s lows in single stocks for risk management.

The board is all SPU/BONDS ( Long Stocks /Short Bonds). This is the relevant spread running all trading. 1160 is the first major upside hurdle in the S&P 500 Futures with 138.28 +- ….then 138.00 in the 30 Yr. Bonds for support. These numbers have not changed and won’t.

The metals could be very vulnerable for bouts of profit taking up here. They will continue to be a big trade.

Silver came 50 cents shy of the level I would still recommend taking profits the first time up (44.60 ish). This is just a level I consider a “FREE out” to see what it does. Meaning the rally will have been so prolific you can lift your longs to see if you get a pullback. If there is no pullback, the overbought condition of the market will let you back in without giving up much, if anything. ” The dollar weakens…foreign investors use their strong currencies to buy dollar denominated assets which are cheap!” When we’ve seen these small bouts of dollar strength the metals still seem to benefit as investors have no other safe haven place to park money, making it a win win for precious metals longs.

September Oil Futures expire today.

Trade what you see..

Model Trading Portfolio…Current Holdings

No positions