The weekend’s G20 meeting did not promise anything new and we have a slow, negative start to the week. Global sentiment is positive on the prospect of more cheap liquidity coming its way. This week the ECB has the Second Unlimited 3 Year ‘Funding Package’ from the LTRO going to the European Banking Sector.
S&P 500
The S&P continues to trade in the 1351/1369 range. As long as we don’t close below 1350 the market is still positive. I plan to trade this range awaiting our next break in the market.
EURO
The Euro tested our 1.3480 level and, as I shorted, I am now covering here at 1.3410. I will wait to reset my short on a move back to 1.3500.
Gold
Gold is trading heavily this morning as the market takes a break form the big move up last week. We are trading 1765 and a break of 1758 will put us back into the old 1705/1763 trading range which has been in place over the last few weeks.
USD/JPY
Finally we are seeing some Yen strength and I plan to short Yen Currency and/or buy USD/Yen on any move back to the 80 level.
Dax
The Dax looks the weakest of all the markets and, for me, is a potential sell on any move back to 6830/6850 looking a for a test of the recent lows at 6730. A break will lead to a test of 6650 again where I plan to buy.
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