The value shoppers have been out all day. The Spu’s can trade 1358 and fail. Closing above the low 60’s will have this analyst looking for prints in the 1400’s.

The Spu’s are 50% either side of nowhere right now. The price action is exactly what the Bears should see, a mid-week 1-1 1/2 half day rally to nowhere, which is followed by weakness.

Bulls are betting the low is in for the week. Hence, (The Mid-Week Shuffle).

EUR/JPY…should be monitored @ the 200 day again ( 106.82). This has acted as the Risk Pivot over the past week. “Above” Risk ON…”Below” Risk Off.

Methodology Note….

Yesterday had us buying in some of our Shorts around the 1339-43 area. Why, because it was a support zone that could hold the market. We also added Long Hong Kong to spread off some of our short exposure, thus reducing our upside Risk.

We’ll be stopped out of one side of this spread. Still waiting to see which one.

We use this methodology so we’re always banking money. It’s not an all or nothing proposition. Only some more time and price action will tell if this down will become deeper or it’s over.

Worst case scenario, “we give back some of the gains to see if this will turn into a bigger trade”.

JJG….our out is a “46 stop on close”. The stop was raised for profit protection. The low of the day seems to be descent support. Trader’s Choice…those of you that wish a little more scope on your risk parameter, can wait to sell tomorrow if this ETF is down again. Price action under 45.60 would lead to a deeper correction.

“For continuity, we will take this off our portfolio holdings with a close under 46”.