The Markets had another volatile day yesterday as Equities were down hard at lunch time on the back of Spanish yields breaking 6%. When the US opened it brought the Equities back to unchanged before a small sell off into the close on the back of Cisco earnings. However they rallied overnight and we are back to where we were 24 hours ago. There is more news today which will provide some relief from the daily twists and turns in Greek politics. Spain announced that it has partially re-nationalised Bankia by giving capital in return for equity which is the beginning of its transfer of bank debt to soverign debt. Later today we have trade data from the US and we also have the Weekly Jobless Nos at 1.30pm. These will be closely watched after last week’s disappointing Non Farm Payrolls.
NOTE: All comments below refer to the June Futures Contract in each instrument apart from where separately specified.
S&P 500
The S&P dropped hard after I posted my comment yesterday and we had a 16 handle gap before the open. I bought the market at 1348 and I was able to take profit at 1360. I am flat again and I want to play the range. This 1340/1350 level support is massive and if we break below 1340 we are going to test my 1321 level where I will be a big buyer the first time down.
Today I want to buy at the same level as yesterday from 1347/1352 and I will also look to sell from 1365/1370 with a 1373 stop.
IBEX
After Spanish yields broke 6% the IBEX fell hard and I got stopped out very quickly on first buy at 6840 when we traded through the 6790 level. I reset my long position at 6705 and I am still long. I will raise my stop to 6790 and if I am not stopped out I will take profit at 6870.
Bund
The Bund finally traded up to my 143.00 level and I put on a small short position with a 143.10 stop I will look to take profit from 142.00/142.20 I will add to my short position on any move back to 143.00.
Euro/USD
The Euro continues to trade in the 1.2930/1.2970 support zone. I am very impressed how well the Euro is holding up. I am still long however if we linger in the 1.2930 region for more than an hour I will cancel my long position. On the other hand if it remains robust then I will take profit on any move back to 1.3040.
FTSE
The FTSE traded down to my buy zone and I am long at 5480. I will leave a breakeven stop on this position. We are very oversold and if I am taken flat I will reset my long position at 5450 with a 5420 stop.
Recent Comments