Time 9:36

Stocks: PCU, FCX, SLT, QLD, SSO, DDM

PCU, FCX, SLT: The copper stocks are all set on the dialy and 60 min. charts. Buy on a TWAP until 10:30. If the 60 min. is intact by then own the whole position.

QLD, SSO, DDM: The market trade looks like it is setting up again. We will wait for 10:30 before we buy the positions. All are giving 60 min. buy signals on the gap up. If the gap holds in the 1st hour the rally will be for real all day.

Market Comments:

Once again the market swings on "good news". JPM, WFC and INTC all had better than expected numbers. The inflation numbers continue to be good for the commodity sector and the dollar is getting killed. As GLD and SLV break above their respective 50 days ma we are releasing the hedge. I don't believe in this rally and think it is a bear market rally but I do not wantto short until we definitely enter a new down trend. I was right yesterday not to put on shorts yet eventhought it was very tempting. I would have made that bad trade last year. As I noted there was no volume selling in the last week sell off and so no distribution. That simple fact highlighted that the sell off was only a pullback. We need to wait for a difinitive downtrend to begin shorting again.