The markets had a wild start to the 2nd Quarter as the markets reversed course in the afternoon after a nasty sell off before lunch. Overall sentiment is a little better but not convincingly so with Equities and Commodities both higher. Markets are impatient with slow improvements and and policy stagnation and are looking for more direction and want to price in a recovery or more easing. Retail sales in Australia overnight were disappointing at just +0.2 percent with the AUD/USD pushing below the key 104 level. Today we have Factory orders out of the US and the FOMC minutes.

S&P 500

The S&P fell to 1399 after my commentary yesterday allowing me to go long and then traded up to 1417 which was my sell zone. I took profits and went short at 1416. I will leave a 1420 stop and look to cover and go long on any pull back to 1400/1405.

Euro

As long at the Euro stays over 1.3280 it is still bullish. I will buy from 1.3290/1.3320 or if we break 1.3400 – on any long position I will leave a stop of 1.3250.

FTSE

The FTSE traded down to my buy level at 5700 and as we are now trading at 5830 I will leave a stop at 5810. UK PMI was better than expected leading to this stong rally and the market was caught short.

USD/JPY

The USD/JPY traded into my buy zone yesterday and I am long from 82.30. I dont like the way the Yen is trading and I have taken a small loss at 82.10 this morning. I will stay flat and see how the market trades over the next 24 hours.

DAX

The Dax has traded well this week after last weeks sell off. I will buy from 7020/7050 with a stop at 6990 and sell from 7170/7200 with a stop of 7220.