European Equities notched up some gains on Friday on the back of the Financial Times article which said that Spanish and European officials were developing plans for an economic reform/bailout needed to qualify for European Central Bank bond market assistance. The Spanish stock market rose 2% with Spanish bond yields easing a little. The French Prime Minister Ayrault, in an interview over the weekend with Mediapart, said Greece should be given more time to meet terms of its international bailout. Calls for leniency follows confrontation between Greece and the Troika last week over lenders demands for an additional €1.5billion of pension and public sector salary cuts to meet €11.5billion deficit reduction target. In other news ESM Chief Regling says they are seeking private sector participation in ESM to boost fund to over one Trillion Euro. This morning Asian stocks retreated from 4 month highs and commodities are lower on concerns that renewed discord between European leaders will hinder resolution to the debt crisis.
Today we have the important IFO from Germany followed in the US later by the Dallas Fed Manufacturing Activity.
Dec S&P 500
The S&P had a nasty selloff into the close after the expiration on Friday. The market has entered my buy level this morning and I have gone long at 1448. I will leave a 1443 stop on this position and I will look to take profit at 1455 and I still want to go short from 1465/1470 with a 1473 stop.
Euro/USD
The Euro has also entered my buy level this morning and I have gone long at 1.2940. I will leave my stop the same at 1.2910 as I look for a test back to the 1.2990/1.3020 area where I will look to take profit. If I manage to take profit in this area and the Euro subsequently sells off again I will still be a buyer from 1.2930/1.2950.
Dec Bund
The Bund also traded up to my sell level this morning and I have gone short at 140.30. I will lower my stop to 140.40 which is just above this mornings high and I will look to take profit from 139.60/139.90.
Dec FTSE
I was stopped out of my long 5825 FTSE overnight at 5800. I still like the FTSE and I have gone long again this morning at 5810. I will leave at 5780 stop on this position as I look for the FTSE to retest the 5850/5870 area where I will look to take profit. As I said last Friday I do not want to short FTSE at this time.
Dec Dax
I was stopped out of my 7420 short at 7455 on Friday morning and I am now flat. I will be a small buyer on any dip back to the 7390/7410 area with a 7370 stop. Just like the FTSE I do not want to be short the Dax at this time.
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