The US Dollar has rebounded across the board after a 10% slump in Google shares after a big earnings miss and a bungled early release of its earnings report. The sentiment on Wall Street was not helped by an unexpected jump back up in Weekly Jobless Claims to 388K from 339K, the previous week. However the much stronger than expected Philadelphia Fed Survey prevented the stock market from retreating too much. The European markets were helped by the good results from the Spanish 3,4 and 10 year Bond Auctions which resulted in yields continuing to fall. UK Retail Sales also came in better than expected.
This morning, as the EU Summit continues they have announced that they aim to have Bank Supervision to start in early 2013. Things should start to heat up in the Euro-Zone next week as the Troika is expected to complete and deliver its report on Greece. This morning the UK releases its September Public Finance Report and in the US we have Existing Home Sales, also for September. Finally, the EU Summit also concludes today.
Dec S&P 500
Another very quiet trading range for the S&P, despite the 10% fall in Google shares. This is one of the reasons why I do not trade individual shares as they are too dangerous and I do not know what the inside track of what is going on in each company. The market finally dropped down to my 1448 buy level and I was able to take profit at 1454 and I am now flat. The market has now held this 1435/1443 gap since Tuesday and I will be a buyer this morning on any dip to 1443/1447 with a 1440 stop. I will also be a seller if the market rallies to the 1460/1465 with a stop above the high, made two weeks ago, at 1467.
Dec FTSE
The FTSE traded up to my 5900 sell level and I will lower my stop to 5910. The FTSE is still outside its Bollinger Band and the Williams Index has turned down but unfortunately the FTSE has not moved much. I will look to take profit from 5860/5870 and I will still look to go long if we dip down to 5830/5850 with a 5820 stop.
Euro/USD
The Euro also traded down to my buy level and I went long at 1.3055. I will leave my stop the same at 1.3030 and I will look to take profit on any move up to the 1.3090/1.3120 area. The Euro just missed my 1.3140 sell level yesterday and I will still look to go short here with a 1.3175 stop which is just above the high made last month.
Dec DAX
The Dax is very well bid despite the fall in Google shares the Dax seems very well supported here. Today I will look to go long the Dax from 7390/7410 with a 7380 stop which is just below yesterdays low. I do not want to be short at this time.
Gold – Rolling Spot
A few subscribers have asked my opinion on Gold which is not my favourite commodity to trade. I do not normally like the price action of Gold however this morning I will be a seller from 1740/1745 with a tight 1752 stop. If I am taken short I will look to cover from 1700/1710 and I will also look to go long from 1690/1696 which is huge support with a 1685 stop. A break and close below 1690 will be short term bearish.
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