A very quiet day yesterday as the market waited for the Minutes from the FOMC. The Fed said they are not ready to print money yet which is not what the market wanted to hear. The Minutes showed the Fed are torn in several ways. Firstly, some wonder about the usefulness of printing money whilst a few still wonder about long term inflation risks and a few more are concerned if long term treasury buying will distort the market. Bernanke is on record as saying that he still thinks long term printing works, so we will probably get some QE if needed. The net result is that, in the absence of sharp economic deterioration in the near term, another round of QE is not as imminent as some had hoped.

In other news, German inflation eased to 1.7% from 1.9% last month. The Trade No’s narrowed in the US on the back of lower Oil prices and Spain has said it will increase austerity measures. Today we have the weekly Jobless Nos from the US at 1.30 and these will be closely watch after last weeks disappointing Non Farm Payrolls.

Sept S&P 500

The S&P worked well yesterday as we dropped in my buy area after the FOMC Minutes and I was able to go long at 1329. We had a nice rally into the close and I was able to take profit at 1338 and I am now flat. This morning the market is well down which is the 6th day in a row. I will look to buy from 1322/1326 with a 1319 stop. 1321 is the key level to watch as it is an open gap left from 2 weeks ago and a break and close below 1320 will be very bearish.

Sept DAX

The Dax dropped into my buy zone yesterday morning and I went long at 6408 and I was able to take profit at 6450 before the market rallied to 6500. The Dax is currently outperforming the US markets. Today I will look to buy from 6365/6385 with a stop at 6345 which is just below Mondays low. If I am stopped out I will look to reset my long from 6300/6310 with a 6280 stop. On any long position I will look to take profit from 6440/6460.

Sept FTSE

The FTSE has entered my buy zone this morning and I have gone long at 5570. I will leave a 5550 stop on this position and I will look to take profit on any rally to 5615/5630 which the market found very hard to get through yesterday.

Silver

No change as I still want to buy from 26.30/26.50 with a 25.95 stop. If I am taken long I will look to take profit from 26.90/27.10.

Sept BUND

As expected i was stopped out of my short 144.00 position at 144.30 and I am now flat. The market is a lot higher this morning as German 10 Year Yields are at record lows. Today I will look to go short again from 145.10/145.30 with a tight 145.48 stop.

Euro

The Euro continues to trade lower. I am flat and the next level of support is the 1.2160/1.2190 area. A break here will lead to a move to the 120.50 which is key long term support. I am not trading the Euro for the moment as I wait to see how things pan out and plan my next move once I see what happens at these important levels.