The Non Farm Payroll No’s disappointed the markets on Friday, as the Unemployment Rate is now stubbornly stuck at 8.2%, well away from levels that would be deemed consistent with the employment element of the Fed’s dual mandate. Hopes for a better Payrolls Report, after the relative strength witnessed in the earlier ADP Report and the employment element of the Non Manufacturing ISM Report, doubtless compounded Fridays sense of disappointment. Next up we have the FOMC Minutes which will released on Wednesday and it will be interesting if there is any mention of QE. On Friday we have GDP from China. In Europe, the Finance ministers are meeting today to discuss the Spanish Banks bailout and how they are going to try and reduce her Bond Yields, as 7% is not sustainable going forward.
Sept S&P 500
After the disappointing Payroll No’s on Friday the market sold off to test the important 1342/1345 area before a late rally took the market back to 1352. I did not trade the S&P on Friday and I have gone long this morning at 1346. I will leave a 1339 stop and I will look to take profit in front of 1360. If we break and close below 1340 the market will probably trade back to the 1321 Gap left from 10 days ago. If I am stopped out of my long position I will look to reset in front of 1321.
Sept FTSE
The FTSE traded down to my buy level on Friday at 5600 and I am now long. I will leave the 5580 stop in place for now. The FTSE was least affected by the Payroll No’s on Friday and the market seems bid to me. I will look to take profit from 5640/5660.
Silver
Silver traded down to my buy area on Friday and I am long at 26.95. I will leave my stop the same at 26.50. I only have a small position and I will look to take profit on any move back to 27.60/27.80.
Sept Bund
The Bund traded up to my 144.00 sell level this morning and I am short with a 144.25 stop. We are very overbought and I will look to take profit from 143.30/143.50.
Sept EURO
Much to my surprise I was stopped out of my 1.2320 long position at 1.2280 on Friday and I am now flat. The Euro is extremely oversold. I will look to go long again from 1.2270/1.2290 with a tight 1.2250 stop which is just below Fridays Low.
Sept DAX
The Dax is a contract that I have not traded for a couple of weeks. Today I want to go long from 6370/6390 with a 6350 stop.
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