The key themes in Global markets continue to be Greece’s finances and the US Fiscal Cliff. The latest Greek development was the successful sale of €4.1 billion of Treasury bills staving off the prospect of a default on the €5 billion maturing tomorrow. Meanwhile Euro-Zone and IMF officials continue to negotiate a compromise over the next €31.3 billion of bailout funds. In the US, Home Depot helped the US Stock market announcing an earnings upgrade and forecasting improved trading ahead. On the Fiscal Cliff, Standard and Poors
said yesterday the most plausible outcome was a deal to avert a recession which would otherwise occur.
Today is a busy one for economic releases with Euro-Zone Industrial Production and UK Employment data followed by the BOE Inflation report at 11.30. Later in the US we have Retail Sales and Business Inventories and the Fed is releasing its latest FOMC Minutes.
Dec S&P 500
The S&P had nice rally after the US opened and I was able to take profit at 1376 on my 1367 long and I am now flat. The market traded up to a high of 1386 before having another bad close with the main US markets closing on their lows. As I said yesterday I think the market is trying to put in a bottom between 1340 and 1370. This morning I will only be a buyer if we dip back to the 1363/1368 area with the same 1356 stop. If I am stopped out I will be a very aggressive buyer from 1340/1344 with a 1336 stop. As the market is oversold I do not want to be short at this time.
Dec FTSE
The FTSE worked really well and I was able to take profit at 5760 and I am now flat. I still like the FTSE and I will look to reset my long position on any dip to 5715/5735 with a stop at 5690 which is just below yesterdays low.
Dec DAX
The DAX worked really well as we made a new low at 7075 before having a nice rally. I took profit at 7160 on my 7110 long and I am now flat. This morning I will look to reset my long position on any dip to 7110/7130 with a 7070 stop which is just below yesterdays low. Again given the volatility of the Dax in comparison to the FTSE, I always trade in smaller size for the Dax as I have to use a wider stop.
NASDAQ 100 Daily Rolling Contract
I have not traded the Nasdaq in over two years but after the nasty sell off in the market led by Apple which makes up nearly 20% of the Index I think both Apple and the Nasdaq are trying to put in a bottom. As it is too dangerous to trade Apple shares I prefer to trade the Index and this morning I will be a buyer from 2555/2575 with a 2520 stop. As long as Apple stays over $530 the Nasdaq should be okay.
Euro/USD
The Euro just missed my 1.2660 buy level by 2 points and we are now trading at 1.2725. I also think the Euro is trying to put in a bottom and this morning I will raise my buy level to 1.2690/1.2710 with a 1.2655 stop which is just below yesterdays low.
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