Stock markets continue to trade higher helped by comments from Fed Chicago President Charles Evans who said the Central Bank should continue to support Economic Recovery. Evans reassured markets that the policy would remain in place until the Economy got back on track to full sustainability.
He also said that the US Government should put in place policies that slowly but surely bring the prospects of future revenues into balance with future spending. In Japan, Prime Minister Shinzo Abe is set to become the best friend of investors in US Treasuries as he buys US Government Bonds to weaken the Yen and boost his nations slowing economy. This move will hopefully inflate the economy which has been battling deflation for more than a decade with Consumer Prices falling 0.1% each month on average over the past 10 years. In Europe, Spain’s Housing Sales fall 6.1% in November.
This morning on the economic front we have Industrial Production from the Euro-Zone at 10.00 am while there is nothing scheduled from the US today which will be quiet ahead Retail Sales Tomorrow.
March S&P 500
The S&P had another very quiet day on Friday as the shown by the VIX which continues to trade lower. The market dipped down to my 1466 buy level with a 1462.25 low and I took a small gain at 1470 before the close and I am now flat. I still like the market and I believe we are just going to grind higher up to the next 1490/1500 important resistance. Today I am buyer on any dip to 1464/1468 with a 1461 stop and I will be a small seller on any rally to 1480/1483 with a 1485 stop.
March FTSE
The FTSE worked really well and I was able to take profit overnight at 6095 on my 6048 long position from last Thursday. The 6100/6120 is key resistance on the FTSE and this morning I am a seller on any rally to this area with a 6130 stop. If it sells off from here I am a buyer from 6055/6070 with a tight 6045 stop.
USD/JPY
After I posted on Friday the market traded up to my 89.35 sell area and I took a nice gain at 89.00 late on Friday and I am still flat. I really believe this move is on its last legs and I am looking for a good pullback over the next week. Today I will be a seller on any rally to 89.60/89.80 in small with a 90.20 stop.
March BUND
The Bund just missed my 14.00 buy level on Friday with a 142.06 low before having a nice rally. As I said on Friday I still like the Bund and today I am a buyer on any pullback to 142.40/142.60 with a 142.25 stop. I do not want to be short at this time.
Euro/USD
The Euro just missed my 1.3230 buy level on Friday before continuing its huge rally after Thursday’s ECB press conference. It rallied up to my 1.3320 sell level and I was quickly stopped out 1.3340 and I am now flat. I believe this market is very overbought and the Williams Index has started to turn down. Today I will be a seller on any further rally to 1.3380/1.3400 with a 1.3420 stop. I do not want to be long at this time
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