A positive opening this morning as Greece elects those who want to stay in the Euro. The optimism may stay but might find it hard to extend. Greece’s New Democrats won 27.1% which allows them to form a coalition in the coming days. Its amazing that the world markets are fixated on a country with just 0.1% of the world’s population. Today we have the G20 meeting in Mexico. There are suggestions that they will contribute more money to the overall IMF bailout. The last G20 meeting was supposed to do the same but the funds forthcoming were less than expected. Tomorrow we have a two day Fed meeting and the results will be announced on Wednesday. On Thursday, we have the ECB meeting where there is strong talk of a rate cut. In other news, French elections confirm Hollande’s Socialists have gained an absolute majority in Parliament for the first time since 1993.
Sept S&P 500
We did well by not being short this market all week but now that the Greek elections and the expiration of the June contracts are out of the way hopefully we will have a normal market from now on. Today I will look to short the S&P on any rally to 1343/1348 with a tight 1350 stop. I will also look to go long from 1329/1333 with a 1325 stop.
Sept Bund
The Bund traded down to my buy level this morning with a 141.18 low. I went long at 141.30 and I have taken profit at 142.00. I will keep my buy zone the same at 141.20/141.60 with a 141.10 stop.
EURO
It is good that we were not short the Euro as the short squeeze continues. I will look to go short from 1.2740/1.2780 with a 1.2810 stop. I will also look to buy on any dip back to 1.2600/1.2630 with a 1.2570 stop.
Sept DAX
The DAX has now broken the strong resistance of 6200/6250 this morning and I will look to buy on any dip to 6220/6260 with a 6210 stop.
Sept FTSE
The FTSE continues to trade heavy and today I will look to sell from 5500/5530 with a stop above 5550.
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