The currency markets are unchanged from yesterday despite the Euro falling after the unchanged announcement from the ECB meeting. It quickly rose back up after Dragis’ comments that the the Economy was less downbeat than expected. Spain was able to meet its target of selling 2.5Billion Euro for its Three-Year Auction but had to pay 4.04% up from 2.89% in April. This morning we have the Eurozone PMI and at 1.30 we have the closely watched Non Farm Payrolls in the US and this will lead to an increase in volatility. On Sunday we have the second round of the French Elections which will add to market volatility when markets open again at 11.00 pm that night.
NOTE: All comments below refer to the June Futures Contract in each instrument
S&P 500
After my comment was posted yesterday the S&P traded up to 1402 and then fell and took out my stop at 1390 and I am now flat. I want to stay flat ahead of the NFP announcement as if we get a weak number the market will fall hard. If we get a good number then the market will rally into the overhead resistance level of 1397/1402. I prefer to stand aside here. If the market drops to 1370 I will be a buyer with a 1365 stop.
Euro/USD
The June Euro traded up to my 1.3180 sell level and I am now short with a 1.3200 stop. I only have a small position as we have so much news out over the next few days and I will look to take profit in front of 1.3050.
Crude Oil
June Crude had a false breakout over the 105.00 level. It shows the importance of stops in the market as I got taken out of my 105.40 long at 104.80 and we are now trading at 102.00. If the market continues to fall I will buy from 101.00/101.20 with a 100.50 stop which is the key level for the bulls.
USD/JPY
The market traded up to 80.60 and I took profit at 80.50 and I am now flat. I still don’t like the way the market is trading and I only want to buy on a drop to 79.50 with a 79.20 stop.
DAX
The DAX has traded in a very wide range over the last two weeks and I have a resting order to go long the market at 6540 with a 6490 stop. The last time we traded down to this level we got a 300 point rally.
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