Equity markets were nicely ahead on the back of strong US Home Sales when the headline came out from ex Prime Minister Papademos that preparations for a Greek exit are been considered. This was enough to turn markets from gains to risk off. All eyes will be on the European Summit today but divergences between countries remain with Germany’s Merkel saying they will not have a Eurobond. Holand and Monti want them as does the IMF and OECD. The IMF is also vocal on the UK and is worried about further economic weakness and are looking for mere QE and lower interest rates. Later this morning we have the BOE minutes and UK Retail Sales.
NOTE: All comments below refer to the June Futures Contract in each instrument
S&P 500
On the back of strong Retail Sales the S&P rallied into my sell level with a high of 1326 and then fell, on the back of the Greek news, back to 1308 where I covered my short position. Today I want to buy from 1300/1305 with a 1294 stop as I look for another of 1320. If we make it up to that level I will then look to go short from 1320/1325 with a 1327 stop.
FTSE
The FTSE traded up to my sell level of 5370/5400 with a 5395 high. I went short at 5380 and I have covered my position at 5320 this morning. Today I want to buy from 5280/5300 with a 5270 stop and I will leave my sell level the same at 5370/5395 with a 5410 stop.
EURO
I bought the Euro yesterday at 1.2730 and I was stopped out at 1.2710 and I am now flat. The 1.2600/1.2630 is the crucial level for the Euro as a break will lead to a quick move to 1.2480. The Euro is very oversold and the CFTCs weekly data shows a record net short position in the EURO. Today I will look to buy in small from 1.2620/1.2650 with a 1.2595 stop. I do not want to be short here as the market is so short of the Euro.
IBEX
No change, I want to buy from 6430/6470 with a 6400 stop. It is worth having a low order in the market as a bearish comment can knock the market down quickly.
GOLD
It is good that I covered my long position yesterday as Gold is down 25 Dollars this morning. I will look to buy from 1535/1550 with a 1520 stop
Recent Comments