Equity markets were lower yesterday on the back of the fact that the IMF have
highlighted that European banks will have to sell assets up to the tune
of 3.8 trillion USD. All eyes today will be on the 10 year Spanish Auction
and to date the markets have worried about these auctions but they have
tended to get away ok and there is typically a subsequent relief rally. The BOE
minutes released yesterday were more upbeat, leading to a rise in Sterling.
Today we have the Weekly Jobless Nos from the US at 1.30pm and these will
be closely watched after last months Non Farm Payrolls.
S&P 500
The S&P traded down to my buy level with a low of 1377 and then rallied
back to 1385 where I took profit. The market then gave me a chance to buy
again at 1379. I am going to keep this position with a 1377 stop as I look
for a move back to 1390/1393 where I will go flat. I only want to sell from
1395/1400 with a 1402 stop.
FTSE
The FTSE traded down to my buy level at 5680 after the BOE minutes were
released and then traded up to 5748 this morning. I sold at 5745 in a small position
with a 5785 stop. If the market continues to rally, a break of 5800 will be
a buy signal. I will cover my shorts in front of 5700 and I will look to go
long at 5680 again with a 5650 stop.
USD/JPY
No change as I have the same stop at 8100 and I will take profit from
8160/8190. If we break 8200 it will give a buy signal and I will reset longs here as I
will look for a move back to 8300.
GBP/USD
The Cable has had a nice rally on the back of the BOE minutes released
yesterday and we are now at the top of the Bollinger Band. I want to sell
from 1.6090/1.6120 with a 1.6150 stop looking for a retest of 1.60/1.6020
where I will look to cover my short.
EURO
The Euro had traded in a very quiet range over the last 24 hours. I am still
long with the same stop at 1.3070 and I will take profit on any move to
1.3150/1.3180. If we break 1.3200 it will give a buy signal.
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