All change as the markets are happy to believe that cheap money will be forthcoming thus leading to a rally in Equities and Commodities and a weaker Dollar. This rollercoaster is likely to continue until we get European stability and a stronger US Economic recovery. The Growth No’s from China disappointed this morning and we are seeing a sell off from the highs of last night which came in at 8.1% versus expectations of 9%. Today we have CPI and Consumer Confidence from the US.
S&P 500
The S&P bottomed in front of my buy level at 1360 and rallied all the way to 1388 to close the gap left open from last Thursday’s close. I went flat at 1375 and I am short from 1381. As I have had a good week I will leave my stop at 1390 and I will take profit at 1376. I will also look to go long from 1369/1373 with a 1366 stop. Building value above 1390 will likely see a move to new highs.
Euro
I sold the Euro at 1.3200 and I have just taken profit at 1.3160. I no longer want to be short and if the the market can build value over 1.3200 I will go with it and leave a stop at 1.3170 looking for a retest of the important 1.33 level.
FTSE
The FTSE went right into my buy level at 5565 yesterday and I took profit at 5650. The Bollinger Band really works for the FTSE and Cable and this proved itself again over the last few days. I will look to go short from 5690/5720 with a stop at 5740 which is the key level for the bears.
USD/JPY
No change from yesterday but I am disappointed we have not had a bigger rally off the 8060 level. I will continue to leave a break-even stop and I will take profit in front of 8120.
Natural Gas
I was taken out of my 2.18 long at 2.10 last Thursday and I will look to reset my long at 1.90/1.95 with a 1.70 stop. I am still convinced we are putting in a long term bottom for Natural Gas.
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