Another volatile day as one minute we get good news and the next we get bad news. The good news was China cutting its rates by 25 basis points for its first cut since 2008. This was followed by the testimony of Bernanke who did not offer any immediate prospects of more Fed easing which took equity markets lower, oil prices a lot lower and the USD stronger. The market had been anticipating some suggestion of QE, given the comments from other Fed members in recent days, but Bernanke wasn’t as negative on the domestic economy and whilst highlighting the risks from Europe he did not suggest any need for a move. Fitch downgraded Spain overnight to BBB and Spain is now only two notches above junk status. Later today we have the Trade Nos from the US.

June S&P 500

The  S&P worked well yesterday as we traded up to my sell level with a 1329 high and then fell to 1312 before the close. I sold at 1327 and covered at 1317 and went home flat. The market is well down this morning on the back of the Spain downgrade and oil prices getting hit hard. Today I will look to buy from 1301/1306 with a 1297 stop.  As I have had a good week I am only trading small size. I will also look to sell any rally from 1314/1319 with a 1321 stop.

June EURO

The Euro was very frustrating yesterday as we just missed both my buy and sell levels and then proceeded to trade 100 points either side of these levels. I am still flat the Euro and I am disappointed the way it is trading this morning. I will attempt a small long from 1.2430/1.2460 with a 1.2395 stop. I dont want to be short here only if we rally back to yesterdays highs near 1.2630.

June Cable (USD/GBP)

The Cable worked well as we traded down to my buy level at 1.5450 and then rallied to my sell level with a 1.5605 high. I took profit on my long at 1.5580 and went short at this price but I  covered this position last night at  1.5520 and now we are back down to the 1.5400 area. Today I will buy from 1.5390/1.5420 with a tight 1.5360 stop again only in small size.

June Gold

I was stopped out of my 1610 long Gold position at 1598 and I am now flat. If Gold dips back to the 1535/1545 area I will go long with a 1525 stop.

June FTSE

The FTSE just missed my buy area yesterday and then rallied 100 points. Today  we are  back down to  my buy area and I have gone long here at 5395 with a 5370 stop. I will look to take profit on any move back to 5450.