Another volatile trading day as rumours and conjecture on the Eurozone spurred volatility. However with firm direction, Equities and Commodity prices were higher along with stronger Bond Yields, with German 10 year rising by 20 basis points. Meanwhile, wider Bond Yields in Spain and comments from Merkel ensured the Euro was kept in check with gains limited to the 1.2520 level. Industrial Production for the UK came in less than expected but the Cable ignored this and rallied strongly. Today in the US we have Retail Sales and Producer Prices.
Sept S&P 500
The S&P worked well yesterday as we dropped down to my buy zone and then rallied in the last hour to a high of 1319 and I was able to take a nice gain. Again as I said yesterday I do not want to be short this market as all June Futures and Options contracts expire on Friday and the open interest is very short of stocks. Today I will look to go long from 1310/1315 with a 1305 stop and I will look to take profit if I am taken long at 1330.
Cable (USD/GBP)
The Cable ignored the weak Industrial Production Nos and I was able to take a nice gain on my long at 1.5570. Today I will look to buy again from 1.5490/1.5520 with a 1.5470 stop. If I am taken long I will look to take profit from 1.5570/1.5600.
EURO
A very quiet day in the Euro and I was stopped out of my position near the lows of the day before the Euro rallied strongly. Today I will leave the same buy area from 1.2470/1.2500 with a lower stop at 1.2435. As my stop is wider I will trade in smaller size.
Sept Bund
My short position worked well but I took profit too early at 142.95 on my 143.7 short as we are now 120 points lower this morning. Today I will look to buy the Bund from 141.10/141.40 with a 140.95 stop. If I am taken long I will look to take profit from 141.90/142.20.
July Crude
Crude worked really well for a change as just after I posted yesterday we traded down to my buy zone and I went long at 8170 and was able to take a nice gain at 8300. I am still convinced that Crude is putting in a bottom and I will look to reset my long position from 8230/8280 with a 8195 stop. Again given the volatility I am only trading in small size with wider stops.
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