Market sentiment improved over the last 24 hours with Equities and Bond yields both higher. European credit spreads have narrowed and risk aversion is receding. ECB member, Coeure hinted that the ECB may revive its sovereign bond purchase program to lower Spanish borrowing costs. The Beige Book noted that in all 12 regions the economy maintained expansion with manufacturing, hiring and retail showing signs of strength despite the higher fuel prices. All eyes will be on today’s Weekly Jobless Numbers from the US which are released at 1.30pm and will be closely scrutinized after last weeks Non Farm Payrolls.
S&P 500
The market just missed my buy level and then traded up to the 1370
resistence level. The market is still very over-sold and volume was light
for this rally yesterday which is worry going forward. I will buy in front
of 1360 with a 1350 stop looking for a move back to 1375 and I will look to
go short from 1378/1383 with at 1390 stop. Longer term, as long as we stay above 1340 the bulls will still be in control.
EURO
The Euro traded up to my sell level at 1.3150 and I am now flat. I will
sell in front of 1.3200 with a 1.3250 stop and I will buy in front of
1.3070 with a 1.3130 stop.
FTSE
The FTSE had a nice up move and I took profit at 5600. We are still
oversold and at the bottom of the Bollinger Band and I will look to go long
from 5560/5580 with a 5540 stop looking for a move back to 5620/5650.
Crude
Crude had a huge move yesterday as it rallied 250 points from my buy level. I took profit at 102 and I am now flat. I will buy again on any pullback to 101.50 with a 101 stop but in smaller size.
USD/JPY
USDJPY is back above 81 and I will move my stop to breakeven at 8060 on my long. I will still take profit from 81.30/81.50 and I will reset my long on
any pullback to 80.80.
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