The Equity Markets are in retreat this morning as weaker than expected German PMI has knocked the Euro and Dax. Yields on 10 year Spanish Debt rose 17bps to 5.4% which is their highest level since mid February. US Existing Home Sales disappointed yesterday at 4.59M but does not alter the fact that sales of new and existing homes continue to trend higher from their low bases. Today we have the Weekly Jobless Numbers from the US at 12.30pm and we need a strong number to erase this morning’s losses.

S&P 500

The S&P has been trading nicely in the 1395/1402 range over the last few days and it has presented three opportunities to buy at 1395. This morning we have a nice gap down from last nights close and I have gone long here at 1389 with a 1385 stop looking for a test of 1395. If I get stopped out I will be a strong buyer between 1375/1380 with a 1370 stop.

Euro

I was stopped out for a profit on my remaining longs at 1.3240 yesterday morning and reloaded last night at 1.3200 and luckily sold my position at 1.3240 this morning. I am now flat and I look to go long at 1.3130/1.3150 with a 1.3100 stop looking for a test of 1.3200/1.3220.

Bund

The Bund finally traded up out of my buy area and we have rallied 150 points since yesterday morning. I have taken profit and I am now flat. I will buy on any dip to 136.40.

USD/JPY

I was stopped out of my long USD/JPY at 83.50, with a profit and I am now flat. I will look to go long on any pull back to the 82.30/82.60 level with a 82.00 stop.

DAX

I was stopped out of my long Dax at 7070 at break-even and I am still flat. The market is trading very heavy this morning and I only want to go long on any pullback to 6920 area.

Gold

I want to buy Gold at 1625 with a 1610 stop.