Last week’s market relapse that saw Stocks and Commodity Currencies slide based on the fear that the US recovery wont be able to offset the slowdowns in China and Europe. Over the weekend the International Energy Agency warned that the level of Oil prices was enough to tip the world back into recession. Pimco’s Bill Gross says the Fed may hint at QE3 at its meeting in April. Today is very quiet on the economic front.
S&P 500
The S&P rebounded well from its lows on Friday at 1381 and then traded up to 1398 overnight. I have taken profit and gone flat again. I am still going to trade the range and will go long again from 1385/1388 looking for a test of 1395/1398. I will also buy if we break 1400 looking for a test of the important 1410/1420 level. I will short the first test of this latter area.
Euro
The Euro tested my buy area on Friday and then traded up to my sell area at 1.3290. We are now testing the lows again and the important 100 MA at 1.3180. I will buy from 1.3180/1.3200 with a 1.3160 stop, looking for a retest of 1.3250/1.3280.
DAX
The Dax tested my 6920 level and traded up to 7050 this morning. I have taken profit and I am now flat again. I want to sell from 7020/7050 with a 7070 stop and I will buy again at the 6910/6930 level with a 6880 stop.
Bund
I still believe the Bund is at the start of a bear market and we have had a 2 point rally off the lows. I want to go short from 137.60/137.90 with a 138.20 stop looking for a retest of the important 136.60 level. If we break this level we will have a retest of the 135.30 recent low.
USD/JPY
I was stopped out on Friday at 8240 and the market just missed my buy target at 8180. I will leave the parameters the same and I want to buy from 8180/8210 level with a 8150 stop.
Gold
I still want to buy on any dip to 1625/1630 with a 1610 stop. I don’t want to chase the market here
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