Markets were quiet yesterday with holidays in the US and in the UK. European stock indices rose by around 1% despite the further weakness in the Nikkei.. However overnight the Nikkei is up 600 points off its intra-day low from yesterday morning which is helping European Indices and will probably see the US stock markets rebound from their lows made last week.

The Nikkei was helped by the weaker Yen with USD/JPY back to 102.00.  whilst the Bank of Japan released its 26 April Policy Board Minutes. These showed that  they had agreed to continue their their aggressive QE Policy which will double the size of the Bank’s balance sheet by the end of the next year with annual securities purchases of 60-70 trillion Yen – the equivalent to 14% of GDP each year. The bottom line is that the BOJ is pushing on with their program to re-inflate the economy.

Today on the economic front Spain releases its April Budget figures whilst Italy is to sell Bonds. Banque de Franc, Governor Noyer is presenting his Annual Letter on the French Economy whilst later in the US we get Consumer Confidence and the Dallas Fed Manufacturing Activity.

June S&P 500

With London and the US closed for holidays the S&P Futures markets took their lead from the Dax and Nikkei for the short time that the market was open yesterday. This morning it has rallied into my sell level at 1659 and I am now short in small size with a 1663 stop. If I am stopped out I will be a more aggressive seller from 1666/1670 with a 1673 stop. Given that we are approaching month end and the May month end is generally a seasonally strong one I will look to buy the market on any dip to 1646/1650 with a 1643 stop.

Euro/USD

The Euro has traded down to my 1.2900 buy level this morning and I am long in small with a  tight 1.2875 stop. I still do not want to be short the Euro at this time.

June FTSE

The FTSE has gapped higher this morning after last Friday’s sell off. Again given that we are approaching month end it makes it difficult to sell the market and today I will be a buyer on any dip to 6680/6700 with a 6660 stop.

June DAX

The Dax worked really well yesterday as after I posted we traded down to my 8350 buy level with a 8340 low. I took profit this morning at 8440 for a gain and I am now flat. Again given month end influences and the fact that the Dax is back above the key 8400 resistance level it makes it very difficult to be short the market at this time. Today I will look to reset my long position on any dip to 8400/8420 with a 8390 stop. If I am taken long and subsequently stopped out I will be a more aggressive buyer in front of 8340 with a 8320 stop.

June BUND

The Bund has traded down to my 144.10 buy level this morning. I will leave a tight 143.90 stop on this position and if I am stopped out I will be a more aggressive buyer on any dip to 143.20/143.50 with a 142.95 stop.

June Nasdaq 100

The Nasdaq is following the other indices higher this morning and the market has rallied into my 3013 sell level. I will lower my stop to 3040 on this position and given that its is month end I may have to wait until next week for the bears to return.

Silver Rolling Contract

As I have had this position for nearly a week I am disappointed that Silver has not rallied further and I have decided to cut my 22.20 long position for a small profit at 22.50 and I am now flat. Today if Silver trades back down to 21.70/22.00 I will be a buyer with a 21.35 stop.