The S&P rose to another new high yesterday as earnings from Morgan Stanley and United Health Group beat expectations whilst the Weekly Jobless Claims fell and the Philly Fed rose to an impressive 19.8 from 12.5 last month. The S&P is now up 11 of the past 12 days!
The markets were also helped by comments from Bernanke to the Senate Committee who said that data was mixed since the Fed meeting in June and that it was way too early to make any judgement as to whether policy makers will start tapering in September.
After hours last evening, the futures markets were lower after Google and Microsoft reported lower earnings. Today is very quiet for economic data with the UK reporting its Public Sector Borrowing requirements whilst we have no data of significance out of the US.
September S&P 500
The S&P posted another strong showing before sellers returned late on after poor earnings from Microsoft and Google. The S&P just missed my 1690 sell level with a 1688.50 high. Even though the S&P is overbought I am reluctant to sell the market as I still feel we are going to trade to at least 1720/1740 before we get a meaningful sell off. The breakaway Gap from the 1648.5 level is now a week old and for this reason I will raise my buy level to 1673/1678 with a 1669 stop. My only interest in selling the market is on a rally to 1695/1700 with a 1703 stop.
Euro/USD
The Euro dropped down to my 1.3085 buy level. This 1.3070/1.3100 is key support as the 200-Day Moving Average comes in at 1.3075. I am still long and I will leave my the stop the same at 1.3060. My only interest in selling the Euro is on a rally to 1.3170/1.3200 with a 1.3220 stop.
September FTSE
The FTSE traded up to my 6580 sell level. I am still short and I will lower my stop to 6615 which is just above yesterday’s high. Given how over extended this market is my only interest in buying the FTSE is on a dip to 6480/6510 with a 6465 stop which is just below Wednesday’s low.
September DAX
The DAX traded up to my 8280 sell level before quickly stopping me out of this position at 8310 and I am now flat. I am impressed that the DAX was able to close over 8310 and today I will be a buyer on any dip to 8250/8280 with a 8235 stop.
Gold Rolling Contract
Gold just missed my 1288 sell level before having a small sell off. Today I will raise my sell level to 1292/1302 with a 1305 stop.
Silver Rolling Contract
No change as I still want to buy Silver on any dip to 19.00/19.20 with a 18.80 stop. Again as I said yesterday if I am taken long and subsequently stopped out I will be a more aggressive buyer on any dip to 18.30/18.60 with a 17.95 stop.
September Bund
No change as I am still a buyer on any dip to 143.60/143.80 with a 143.35 stop.
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