European stock markets have surged this morning after Spain sought as much as 100 Billion Euro to save its banking system. The bailout loan will be channeled through the state’s bank rescue fund known as FROB. The loan is equivalent to 10% of Spain’s GDP and FROB Debt counts as public debt. The Euro has climbed to its highest level in two weeks helped by the better than expected Chinese export data. All eyes now turn to the Greek election next weekend and the June Summit the following week. Last week was the best week for the US stock market this year having had its worst week of the year the previous week.
June S&P 500
The S&P had another volatile day on Friday as we traded down to my buy level on four occasions before finally trading up to my sell level at 1318. I made nice money on my long position and then I got stopped out on my short position for a small loss at 1321. Thankfully I had a stop loss order in place as the market is well up this morning on the back of the Spainish Bailout. Today I will try to sell this Gap up in small and I will go short from 1340/1345 with a 1350 stop. I will also look to buy from 1323/1328 with a 1319 stop.
June Euro
The market traded down to my buy level in the Euro and I went long at 1.2450. I kept this position over the weekend when the news broke about Spain looking for help to bail outs its banks. The Euro traded up to my target level at 1.2630 and having taken a nice profit I am now short and I will leave a 1.2660 stop on this position. If I am stopped out I will look to reset my short position at 1.2720 with a 1.2750 stop. I will also look to buy any dip to 1.2550 with a 1.2520 stop.
June FTSE
The FTSE worked really well and I was able to take profit at 5450. Today I will look to short from 5530/5550 with a 5560 stop. I will also look to buy on any dip to 5450 with a 5430 stop.
June Cable (USD/GBP)
The Cable traded down to my buy level on Friday and I also kept this position over the weekend and I was able to take profit at 1.5550 last night. I like the Cable and I do not want to be short as I believe the market is still very oversold. Today I will look to buy any dip from 1.5480/1.5510 with a 1.5460 stop.
July Crude Oil
Crude has had a double bottom from 8150/8200. This market is down $28 over the last four weeks and is very oversold. I will look to buy any dip to 8480/8530 with a 8420 stop. I am only trading in small size with a larger stop given how volatile Crude is to trade.
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