Lack of progress in Europe continues as the meeting of the four European leaders achieved little other than expose the continuing disagreements. They managed to promote a E130bn growth plan but the bigger issues remain unclear. What was clear was Merkels opposition to funding Spains banks without conditionality or oversight. She noted that responsibilities and control go hand and hand which should get more attention as Spain is expected to formally request funding this week. All eyes will be on the Summit on Thursday and the promise to do something at a later date will not please the markets this time. In other news, the IFO from Germany was very weak last Friday and has the DAX very weak this morning. Today we have New Home Sales and Chicago Fed National Activity Index from the US.
Sept S&P 500
Friday was a very quiet session for Equities as the market just missed my buy and sell levels and I am flat. Today I will look to buy from 1312/1317 as we have a nice gap down this morning and I will leave a 1308 stop. If I am taken long I will look to take profit from 1324/1327 and I will also look to go short from 1329/1334 with a 1336 stop.
Sept FTSE
I want to buy the FTSE from 5410/5435 with a 5395 stop as I look for a test back to the 5480/5500 level. I will also look to go short on any move over 5500 with a 5530 stop.
EURO
The Euro is back below the important 1.2520 level and today I will look to go short from 1.2515/1.2540 with a tight 1.2560 stop and aim to take profit from 1.2420/1.2450.
USD/JPY
I went long USD/JPY on Friday at 8020 and I will leave my stop the same at 7975. Please see Fridays update for the reason I went long.
Sept DAX
The Dax never entered my buy level on Friday and, as I write the comment, we are well lower. The 6200/6250 as I have said many times is key. Today I am changing tack and I will look to go short from 6210/6230 with a tight 6265 stop. If I go short I will look to cover in front of 6130.
Aug Crude Oil
Crude had a nice bounce off the 7780 low on Friday. If Crude trades back to the 7850 level I will buy with a stop below Fridays low. Again with Crude I only trade in small size given how volatile a contract it is.
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