There is a very modest ‘risk on’ bias as the market waits for the result of the LTRO from the ECB this morning. Concerns over domestic politics coupled with stronger Consumer Confidence numbers from the US has held the Euro back. Today we have Ben Bernankes Semi Annual Testimony and the Beige Book.
S&P 500
The market is very quietly trading higher the morning. It had sold off after weaker than expected Durable Goods and then rebounded after stronger Consumer Confidence numbers. I am staying flat as we await our next break. I plan to sell on a break of 1364 looking for 1352 and buy on a break of 1378 looking for a test of 1395/1400. As long as the market stays over 1350 we are still bullish.
Bund
The Bund tested our 140.20 level and then fell to 139.65. I am staying short with a break-even stop.
Dax
I had a nice short on in the Dax which looked well until the US Consumer Confidence numbers came out and I stopped myself out at 6890.I plan to reset at 6980/7010 level as we have a lot of resistance in this area.
Euro
The Euro traded up to my sell area at 1.3490. I am covering here at 1.3450/60 and will wait for the LTRO before making a new trade.
Gold
Gold looks heavy here in relation to other metals. I plan to sell in front of 1800 with a tight stop looking for a move back to 1770
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