Following two days of strong gains, US Equities have given back some of these yesterday with the Dow and S&P down 0.75%. The NASDAQ fared better, cheered by Oracle’s better than expected earnings forecasts. Weaker than expected Housing Starts and the lack of any new tangible steps towards resolution of the Fiscal Cliff appeared to have played a part in equity slippage and the 11% rise in the VIX. On Cliff developments, House Speaker John Boehner appears set to have the House vote on his plan B that would prevent taxes going up on January 1st on all bar millionaires and also prevents spending sequestration from kicking in. President Obama is repeating that he will veto the bill were it to pass both Houses. However optimism that the shape of a deal will be announced before Christmas evidently still runs quite high.
Today is a key day for economic news with UK Retail Sales due at 9.30am and later at 1.30pm we have US GDP for Q3 and the Weekly Jobless Nos which will now take on greater significance as a result of the Fed linking Monetary Policy to the Unemployment Rate.
Mar S&P 500
The calls worked perfectly yesterday as the market traded up to my 1445 sell level with a 1446 before dropping down to my 1430/1434 buy zone with a 1428 low. I took a nice gain at 1435 on my 1445 short and I bought the market into the close at 1430 and I am still long. I will leave a 1425 stop on this position which is just below the low made on Tuesday. I will also look to take profit in front of 1440 and I will look to go short on any rally to 1445/1448 with a 1451 stop.
Dec Dax
The Dax is trading in a very quiet range as the holiday season kicks in and I have taken profit this morning at 7645 on my 7670 short from yesterday morning. Today I will be a seller on any rally to 7710/7730 with a 7740 stop.
Eur/USD
At last a really nice trade on the Euro as we rallied into my sell zone with a 1.3309 high. I went short at 1.3300 and took profit last night at 1.3220 and I am now flat. This morning I will be a seller again from 1.3270/1.3295 with a 1.3315 stop which is just above yesterday’s high.
Silver Rolling Spot
Silver is a commodity that I have not traded for several months and this morning I have bought the market at 31.10 as we are at the bottom of the Bollinger Band and Williams Index. I will leave a 30.50 stop on this position as I look for Silver to trade back to the 32.00 level where I will take profit.
GBP/USD (Cable)
Cable topped right in front of my 1.6320 resistance area and I went short at 1.6310 and took a nice gain at 1.6250 and I am now flat. If the market rallies from here I will look to reset my short position from 1.6300/1.6320 with a tight 1.6335 stop.
Gold Rolling Contract
No Change from yesterday as I want to go long from 1640/1650 with a 1632 stop.
Recent Comments