Daily STO is coiled for a strong up and all smaller frequencies are positioned for down. We are still not looking to develop new short positions, but use the dips for conservative purchases. Conservative is the key word. For XIV, I like 15.96 and 15.67. 

There is a lot of information coming out tomorrow morning around 8:30 AM including retail sales (MOM) PPI (MOM), PPI (YOY), Core PPI (MOM), Core Retail Sales (MOM), with the retail sales likely the most important. Forecast is -0.2% and previous 1.1%. Anything positive will likely have some short term cheer, but will lose momentum in front of 2:00 FOMC minutes. On the effect of this, I have no idea. We already have QE in place, there are no real expectations coming from the Fed. If they surprise with some guidance towards future expectations, there may be some relief, but since that is pure speculation, we really just need to see what the reaction is at that point.




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