Friday was another wild day for the US Equity Markets with the S&P having a 25 handle rally off the low on better than expected Consumer Sentiment. However a late selloff, as the Fiscal Cliff worries continue along with the worsening European scenario, left the US markets unchanged from their close on Thursday. Optimism that a speech from President Obama might open the door to a speedy if only temporary avoidance of the Cliff were
dashed after the President insisted on Friday that he was still looking for those earning over $250,000 to pay more tax. House Speaker Boehner meanwhile continues to insist that higher tax rates were off limits from his perspective. Both politicians expressed hope for compromise but rhetoric and substance still look a long way apart in these early salvos.
There are no Economic releases in the US today due to Veterans Day Holiday and all eyes will be on Europe this morning to see the what the latest developments are from Greece and Spain.
Dec S&P 500
As expected, the S&P went for the the 1362 open Gap from August 1st last with a 1363.5 low and then had a 25 handle rally off this low. I bought it at 1370 and 1367 and took nice profits, at 1378 and 1384 respectively, before the speech from Pres Obama – I am now flat. Today is Veterans Day and whilst the US Banks are closed the stock market is open as normal. As the S&P closed below the 200 Day Moving Average at 1380 again on Friday I am hoping we will have another run at the 1362 GAP before the market can find a bottom. Today I will be a buyer from 1365/1369 with the same 1356 stop and I am only interested in going short from 1395/1400 with a 1404 stop.
Dec FTSE
The FTSE worked really well as we dropped into my buy zone and I went long at 5715. I took profit at 5755 and I am now flat. I do not want to chase the market here and I will look for a pull back to the 5700/5725 area to reset my long position with the same 5690 stop.
Euro/USD
The Euro also sold off and I went long at 1.2700. I do not like the way the Euro is trading which is understandable with her economic and political woes. Even though we are oversold and at the bottom of the Bollinger Band, I have covered my long position at 1.2720 this morning and I am now flat. The next big support comes in at 1.2650 and I will be a small buyer from 1.2640/1.2660 with a 1.2620 stop. I do not want to be short as we are at the bottom of the Bollinger Band.
Dec BUND
I have covered my 143.20 short position at 143.15 this morning as I am surprised that the Bund never sold off on Friday even when Equities rallied. The next big resistance comes in at the 143.60 area and I will be a seller from 143.50/143.70 with a 143.80 stop.
Dec DAX
The DAX was frustrating because I tightened the stop on my 7115 long position and I was
stopped out at 7095 before the market rallied to 7180 this morning and I am now flat. This morning I will look to reset my long position on any dip to 7095/7115 in smaller size with a wider 7050 stop.
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