I wrote the Bulk last night…. Obviously ETF Traders were hamstrung until this a.m.

S&P 500…Today we’ll look for price rejection in the mid 1270’s the first time up. The pit 200 day is app 1283. A lot of good analysts think yesterday was the low for a while…we’ll see!

It will be a highly technical day with both sides making stands. Bulls on the dips and Bears selling every resistance level.

30 Yr. Futures..App 130.12-15 will be a key hold level today on the P&F charts. Price action below could be indicative of more stock strength. Think SPU/BONDS! Keep your eye on the ball today. Expect a big 2 way trade.

AAPL & OXY …use a stop just a few ticks below yesterday’s low for now.

Yen…Take 50% of your short yen off anywhere close to 79.50 USD/JPY ( app 125.75-126.00 Futures). Etf traders…exit 70% of this trade @ the market. Sell both the YCS and the FXC

General Comments

Monday I bought a partial Long position in the TBT. This is one half of the SPU/BOND spread ( A Risk On Profile). I was looking for a hold in the SPU but I did not like the risk profile in the S&P Futures, so I nibbled ( with a partial position) where I thought I could manage the risk. That was short the 30 yr bonds, into the big pivot zone of 129.15-130.00 via a long TBT position. Being Mr. Premature, the trade was exited early Tuesday. We all know what happened, the SPU’s tried up once failing at the 200 day, and then imploded 40 points while the Bonds rallied 3 full points on a flight to safety bid. Always manage your Risk! If your dance partner steps on your feet, find another partner.

Short Yen/Long Canada via the ETF’s

Professional day traders have the ability to trade from a favored side off the daily price matrix (I.E. if they’re Bullish they buy the breaks). Given that a portion of our clientele does not trade futures or cash we recommend the ETF’s with stops based off the cash, and let the investor decide which vehicle is best suited for their risk profile.

Why did I buy the Canada yesterday against my short Yen?

I had a risk on bias going into today and I thought one side would be big and the other side would be a relative push. To be painfully honest, I just didn’t know which one. So I simply spread off the risk and it worked out. No, The BOJ does not call me before they intervene! When I wrote this last night the Canada was down 20 ticks and the Yen “380”.

I will be out of office traveling from app. 9 central for the rest of the day. I will respond as able.

Model Trading Portfolio…Current Holdings

Long

YCS….FXC = Short Yen/Long Canadian Dollar

AAPL

OXY