Fear and loathing continued to swirl around the markets on Friday slamming investors risk appetite. Equities were down across the board and bond yields declined in many cases to all time lows. The G8 Meeting provided the usual amount of hopeful rhetoric but it was a little short of action or specifics and thus a non event for markets. Notably, world leaders reaffirmed their preference for Greece to remain in the Eurozone whilst the UK and the US stepped up the pressure on European policy makers to boost growth in the region. UK Chancellor, Osborne says Eurozone countries must either stand behind their currency or face up to the prospect of a Greek exit with all the risks that such a scenario could involve. The Fed’s, Lockhart is due to speak later.
NOTE: All comments below refer to the June Futures Contract in each instrument.
S&P 500
No change from Friday as the S&P entered my buy zone and I am still long at 1296. I will leave my stop the same at 1288. As the McClellan Oscillator is extremely oversold at -339 I want to give this position some room. I will look to take profit from 1315/1320 and I will go short in front of 1325 as we have big resistence here.
EURO
The Euro had a nice move up from the 1.2670 area and I took profit on Friday at 1.2750. As I have been saying for the last few weeks, the Euro is holding up very well and I do not want to be short. I will look to reset my long position from 1.2710/1.2740 with a 1.2670 stop.
IBEX
The Ibex entered my buy zone on Friday and I am long at 6440 It has traded well over the last few days and I will leave a break-even stop in place as I look for the market to trade back to 6650 where I will take profit.
FTSE
I am very surprised at how weak the FTSE is. Just like the S&P, we are very oversold and outside the Bollinger Band. I have taken a long position this morning at 5250. I will leave a stop at 5215 which is below the low of Friday. I am looking for the market to trade back to the 5370/5400 area where I will look to take profit.
GOLD
Gold had a nice rally on Friday as the the US Dollar started to weaken and I was able to take profit on my long position at 1595. I still like Gold and I will look to reset my long position from 1575/1585 with a 1560 stop
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