The Euro fully recovered its ‘No Greek Deal’ losses and Equity markets are higher this morning on the better than expected Chinese PMI released overnight. US Economic news released yesterday is supportive of the view that private sector activity is picking up. US Jobless Claims fell back 41k after a 90k Sandy influenced surge the previous week, an early sign Sandy affects may be subsiding. The 11 hour EU Finance Ministers meeting concluded by failing to agree a new deal for Greece and they will reconvene next Monday as Euro-Zone and IMF officials could not agree on how to get Greece’s debt to a sustainable level.
The markets will be very quiet today with the US closed for Thanksgiving. However it is a busy morning for Economic data with the PMIs for Germany and France due, followed by Euro-Zone Consumer Confidence and CBI Orders from the UK.
Dec S&P 500
The S&P continues to trade quietly higher. Before lunch the market traded up to my 1389 sell level and I covered this position at 1384.5 and I am now flat. Tomorrow is Black Friday which is the busiest shopping day of the year in the US and I will be a seller into any strength from here on the back of Black Friday Sales hype from the national media. I will look to go short from 1398/1402 with a 1405 stop. Today I will raise my buy level to 1374/1379 with a 1372 stop. The Futures market closes today at 4.30pm and will reopen again at 11.00pm.
Euro/USD
The Euro worked really well and I was able to take profit at 1.2820 on my 1.2760 long from yesterday morning. Today I will be a seller on any rally to 1.2900/1.2930 with a 1.2950 stop and I will be a buyer from 1.2820/1.2840 with a 1.2795 stop as we have now broken the strong 1.2800/1.2830 resistance level.
Nasdaq 100 Rolling Contract
The Nasdaq has traded up to my sell level and I have gone short this morning at 2605. As I have had a good week I will leave a 2640 stop on this position which is just above trendline resistance.
Dec Dax
The Dax has also worked really well and I have taken profit at 7220 on my 7155 long position from yesterday morning and we are now trading in the important 7200/7250 resistance area. A closing break over 7250 will be very bullish and I will reset my long position at 7260 with a 7230 stop as a break of this level should lead to a test of 7400 over the next week.
Dec Bund
No change from yesterday as I am a buyer from 141.60/141.90 with a 141.40 stop.
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