Yesterday was a big risk-off day in the markets with Equities, Gold, Crude Oil and most other Commodities tumbling whilst the US Dollar surged and Bond yields were lower. The economic data is broadly deteriorating across the developed markets. The Weekly Jobless Nos were worse than expected along with the Philly Fed whilst the European PMI was also very weak as Europe continues to contract. Monti, Merkel, Hollande and Rajoy meet today to discuss the present situation. They are likely to try and get some consenus ahead of the European Summit next week. The market is hoping that there will be agreement on the use of ESFR bonds to buy Sovereign Debt and to get some sort of conciliatory stance on Greece and the funding needs of Spain. The stress test for Spain shows that their banking system needs 62 Billion Euro. In other news, Moodys has downgraded another 15 banks.

Sept S&P 500

It was a good decision not to be long Equity markets over the last couple of days but unfortunataly the market just missed my 1354 sell level by one handle and here we are this morning at 1320. Today I will look to go long from 1313/1318 with a stop at 1309 as 1310 is very good support. I am only trading in small size due to the high volatility. I will also look to go short from 1328/1333 with a 1336 stop.

USD/JPY

I have not traded  USD/JPY for a few weeks. Yesterday, Japan’s Parliament approved the Government’s nominees to the BOJ’s Board, confirming two economists who have signalled support for monetary stimulus. This is a key move and USD/JPY is back above the 80 level this morning. I want to buy USD/JPY from 8000/8040 with a tight 7975 stop as I look for USD/JPY to retest the important 8200 level over the next while.

Sept FTSE

Whilst I missed out on being short the S&P, at least I was short the FTSE from 5570 and I took profit at 5475 last night. Today I will look to go long from 5430/5450 with a 5410 stop and I will also look to go short in front of 5530 with a 5560 stop.

Sept Bund

The Bund worked well as we bounced 140 points off the important 140.20 level and I took a nice gain on my long position. Today I will look to go short from 141.90/142.30 with a 142.50 stop. I only want to go long if we trade back to the 140.50 area.

Sept DAX

The Dax is back to the important 6200/6250 area and I will look to buy here with a tight 6195 stop as I look for a move back to  6330/6350.

Euro and Crude

I was stopped out of these positions for as small loss and I want to see how the market trades over the next 24 hours but before putting on a new position.