We start the week with a ‘relief rally’, triggered by positive opinion polls in Greece. It is a public holiday in the US, and some European countries, which may allow for some respite from market negativity for the day. Spain was the interesting news over the weekend as the Spanish Government issued Bonds directly to Bankia in return for equity. Bankia then posted these bonds as collateral at the ECB in return for cash. Today is quiet on the economic front but later in the week we have European PMIs and Non Farm Payrolls from the US.
NOTE: All comments below refer to the June Futures Contract in each instrument
S&P 500
The Futures market is only open until 4.30 pm due to the US holiday. No change from Friday. I want buy from 1319/1323 with a 1315 stop and I want to sell the first time we test 1335/1340 with a 1345 stop.
EURO/USD
The Euro had a nice up move this morning which allowed me to take profit at 1.2620 and I am now flat. I will look to buy from 1.2550/1.2580 with a 1.2525 stop and I will look to take profit from 1.2620/1.2640. If we break 1.2650 I will also buy as I will then look for a test of 1.2750/1.2800. A break of 1.2800 will cancel the down move and the market will probably look to test 1.30 if this break happens.
GOLD
I have just taken profit on my 1540 long at 1580, this morning, and I am now flat. I will look to reset my long on any dip back to 1550/1560 with a 1540 stop. If Gold breaks and closes above 1600 I will also look to buy as I will then look for Gold to test 1650.
FTSE
The FTSE hit my sell level this morning and I am short from 5390 with a tight 5415 stop. I will look to take profit from 5330/5350.
USD/JPY
I am still long from Friday at 7960 with a 7925 stop. If we break 8000 I will add to my position.
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