Poor data and month end dominated markets yesterday. Equity markets were very choppy ending with small moves in general. Yields were mostly lower and commodities remained particularly weak on the back of global growth concerns. The yen is outperforming while GBP is very weak. The US data was generally disappointing. The Chicago PMI has dropped sharply in recent months and has underperformed the broader ISM. The Jobless claims were higher thus putting pressure on US payrolls due at 1.30pm today. In Europe it appears the consensus is forming against Germany. Dragi is calling for a banking union and suggests the ESM might be used directly to capitalise the banking system. Spain is going to need it and Spains government continues to re-iterate that they do not need help. The US also releases it ISM data later. The UK markets will be closed on Monday and Tuesday for the Queens Jubilee celebrations.
S&P 500
A wild day for the S&P as the market followed my roadmap perfectly. The S&P traded down to my buy level at 1300 with a 1297 low and then traded all the way up to my sell level at 1317 with a 1319 high. It is a long time since I have seen a market give you a chance to go long at the bottom and short at the top in the same day. I have covered my latest short at 1307 this morning and I am now flat. As we have Non farm Payrolls out later I want to sty flat and see how the market trades after the Nos. I will still look to sell from 1315/1319 with a 1321 stop. I will also look to buy in front of 1290 with a 1285 stop.As I said yesterday a break and close below 1290 will be very bearish.
June Gold
No change from yesterday I still want to buy from 1530/1540 with a 1525 stop.
June Euro
I have found the Euro very difficult to trade over the last few days and I got stopped out of my long position yesterday for a small loss. I am now flat and although we are way oversold I don’t want to have a position ahead of the Nos today. If we break above yesterdays high a 1.2420 I will rest my long position with a 1.2380 stop.
June Cable
I have not traded the Cable for a long time. The Cable is way outside its Bollinger Band and I have left a low order at 1.5295 to go long with a 1.5250 stop as I look for a move back to 1.5450/1.5500.
June Crude
My long position in Crude did not last long as I was quickly stopped out and I am now flat. Although this market is way oversold I will stay flat and see how we trade over the next 24 hours
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