All change again as markets continue to rally from Monday’s low. They were helped initially by Apple, as discussed yesterday, and by the FOMC tweaking its outlook for the better and saying that rates will remain unchanged until at least through 2014. This statement helped to keep the USD weak and led to a large rally in stocks. Today we have the Weekly Jobless Nos at 1.30pm and an Italian Bill Auction.
NOTE: All comments below refer to the June Futures Contract in each instrument
S&P 500
I took a small short position in the S&P at 1386, after the FOMC, and as I have had a very good week, I will leave a stop at 1393. If we break 1393 I will go long as I think we will then have a shot a new highs. It just proves that every time we have FED meeting there is no point in been short until after the announcement as the market always rallies in the run up to it.
Euro
When the Euro broke 1.3200 I went long and I have a target of 1.3280/1.3320 where I will take profit. I have a stop on my long at 1.3150. As I have said over the last 2 weeks I do not want to be short the Euro.
DAX
The DAX had a huge rally off the 6500 level and I took profit too early at 6650 and I am now flat. I will buy on any retracement to 6600/6630 with a 6570. Again I do not want to be short this market.
GBP/USD (Cable)
The Cable is very overbought and I will attempt to sell from 1.6200/1.6230 with a 1.6250 stop looking for a retest of 1.6100.
Bund
I was very unfortunate to get stopped out of my last trade at 140.00 and the the Bund fell a 100 pips. I still believe the market is topping and I will look to sell from 140.40/140.70 with a 141.10 stop. I will also look to short the Bund if we break and close below the 140.00 level.
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