The Equity markets continued their bullish run over the last three days with the US markets up 2.4% in this period. The market was helped yesterday by the continuing feel good factor from the FOMC on Wednesday and helped by better than expected Pending Home Sales. The Equity markets are at a critical level and it will be interesting to see if we breakout from here or we sell off back into the previous 2 week range.
Finally, as Spain was downgraded by Standard and Poors last night we will have to see how European Equities and the Euro hold up today.
NOTE: All comments below refer to the June Futures Contract in each instrument
S&P 500
As expected I was stopped out of my small short position at 1393 and I am now long at this level with a 1387 stop. The last 2 weeks have been very kind to me but I have no real feel here. I will keep my small long and look to exit at 1400. If I get taken out a 1400 I will look to reset a long position at 1389/92 with a 1386 stop. If the market can build value back below 1385 it will be bearish and thus the tight stop.
Euro/USD
A very quiet day for the Euro and I am still long at 1.3200 with a 1.3150 stop. I will take profit from 1.3260 /1.3280
GBP/USD (Cable)
I was able to sell the Cable yesterday at 1.6220 and I will leave my stop the same at 1.6260. I will take profit on any retracement to 1.6140/1.6160.
Bund
I was finally able to short the Bund at 140.70 and I will leave my stop at 141.10 as I look for a retracement back to 140/140.20 where I will take profit. I will reset my short position on a closing break of 140.00.
Natural Gas
Natural Gas is finally moving up and I will raise my stop to 2.02 on my long position from last week. If I get taken out I will reset on a move back to 1.85/1.90 with a 1.69 stop. I am still convinced we are putting in a longer term bottom in this market.
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