Markets are optimistic again post the Chinese easing policy and with the news that the Greek bailout is on again. China eased its bank reserve requirement another 50 basis point on Saturday following a similar move in November which allows for greater bank lending in order to boost the economy.

S&P 500

The American markets are closed today for Presidents Day. Despite the continued rally in stocks, the market continues to trade heavily internally as the McClellan Oscillator is still negative. Also the Nasdaq100 failed to make a new high on Friday thus diverging from the Dow and the S&P.

My aim is to sell the S&P between 1367/1370 with a closing the 1375 stop. If we close over 1375 we will have a run to 1400.

Crude Oil

Crude continues on a buy signal but is very overbought and I have gone short here with a tight stop of 106

Dax

The Dax has made new highs for the year and we are in very strong resistence between 6900 and 7050 stay flat for now.

Jpy

The Yen continues to weaken and is testing our 79.50 level. Last week speculative traders reduced their long JPY positions by half, the biggest change in the week