A very mixed day yesterday as the markets started out with pessimism only to reverse course in the last two hours of trading in New York. The Aussi Dollar remains under pressure and 104 is the key 200 Day Moving Average and a close below here this evening could trigger a ‘risk off’ start to April. European periphery yields are higher and bond yields in Germany and America are lower. One of the key events is likely to be the European Finance Ministers meeting on the combined rescue fund. Bernanke said the US Economy is extremely sluggish, thus weakening the Dollar and Equities.
S&P 500
The S&P traded through the1392 level but did not close below. The most important chart point is the close so we need wider stops when near important levels. The S&P traded up from 1390 to 1400 in the last hour of trading and up to 1404 this morning. I am flat now and will look to buy on a pull back to 1392 with a closing stop beneath yesterday’s low of 1386. I will also sell on any rally back to 1410/1420.
Euro
The Euro was the key yesterday as despite the sell off in Equities the Euro traded very well and when Equities reversed the Euro traded up to 1.3380 this morning. I am flat here and will buy any pullback to 1.3280 with a closing stop below 1.3250. I still think we will have a test of the 1.3450/1.3550 level before reversing.
USD/JPY
The USD/JPY traded down to my 8180 level and I will leave a breakeven stop here. I will take profit at 8240 and the look to get long again on a pull back to my buy zone 8150/8180.
FTSE
The FTSE is at the bottom of its Bollinger Band and I will buy from 5680/5700 with a 5650 stop.
Natural Gas
Natural Gas finally hit my buy level and I am long in small with a 1.70 stop. I will add to my position if we break 1.95 as I am trying to build a core position here.
Bund
I am flat the Bund here and I will sell on any rally to the important 13900 level.
Recent Comments