Equity markets continues to provide little overall direction for other asset classes. The recovery in Apple Shares yesterday helped the Nasdaq and S&P to a positive close. The markets were also helped by both Goldman Sachs and JP Morgan reporting street beating earnings estimates.The sharp move down in the Euro on Tuesday prompted by comments from Juncker that the currency was dangerously overvalued drew a retort from ECB’s, Nowotry that the Euro Exchange Rate is not a matter of concern. On the Yen there have been reports of BOJ officials telling FX traders in Tokyo that the comments from Economy Minister Amari (warning of the negative impact of a yen near 100 and suggesting the correction lower was now enough) are not reflective of the Government’s view. Economic data has not played much of a part in market price action in either Europe or the US. Euro-Zone came in as expected at +1.5% In the US both CPI and Industrial Production did the same while the NAHB Housing Data was slightly disappointing.
This morning the ECB releases its monthly bulletin while both Spain and France are selling bills. Later in the US we have the Weekly Jobless Nos, Housing Starts and the Philly Fed survey.
March S&P 500
No change as I am still short at 1464 in small size with the same 1473 stop. The market is extremely quiet and I will give this trade one more day to work or if not I will exit and stand aside.
Eur/USD
Very unlucky yesterday as the market just missed my 1.3330 sell level before falling 60 points. I am still flat and today I am going to move my sell level up to 1.3360/1.3380 with a 1.3410 stop. I will also move my buy level up to 1.3250/1.3275 as this 1.3240 area is now good support.
March FTSE
The FTSE worked very well and I took profit at 6035 on my 6080 short and I am now flat. This morning I am still a seller on any rally to 6085/6105 with a tight 6115 stop. Remember a break and close over 6110 will be very bullish. If the FTSE sells off I will look to buy the market from 6020/6040 with a 6010 stop.
March BUND
The Bund also worked well as after I posted yesterday we traded down to my 143.25 buy level and I took a nice gain at 143.58 on this position and I am now flat. The Bund having traded higher this morning on the open is selling off hard this morning. I am a small buyer on any further dip to 142.75/142.95 with a 142.60 stop.
March DAX
I am finding it hard to get a feel for the Dax at the moment as the market is relatively quiet. The Dax traded up to my 7695 sell level last night and I have taken profit here this morning at 7675 and I am now flat. If the Dax rallies from here I am a seller from 7730/7750 with 7765 stop. If the Dax sells off I will be a small buyer from 7620/7640 with a tight 7605 stop.
GBP/USD
This currency pair is at an interesting juncture as the pound fell hard yesterday on speculation about the UKs membership of the EU and on what terms. Cable is approaching oversold levels and today I will look to buy the market on any further dip to 1.5930/1.5960 in small with a 1.5900 stop.
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