The Feds latest Beige Book, released yesterday, described the US Economy as expanding at a measured pace. The report was compiled and finalised through November 14th ahead of the December 14 FOMC meeting. Most districts reported modest growth whilst New York was disrupted by Hurricane Sandy. In Europe the EU has now given the green light for the already flagged financial support for the Spanish banking system to the tune of €37 billion. Meanwhile Spanish retailing is really struggling, with volumes down 9.7% year on year to October. This morning Asian stocks are higher as US lawmakers say they are optimistic for an agreement to avoid automatic spending cuts and tax increases and the leader of Japan’s main opposition party has called for unlimited Monetary Easing.
Today is a busy day on the Economic front, as we have Unemployment No’s for Germany, Euro-Zone Confidence reports and UK Mortgage Lending all due this morning followed later at 1.30pm by US GDP for Q3 and Weekly Jobless Nos which should be lower as the effects of Hurricane Sandy ease. In the US we also have Pending Home Sales and the
Kansas Fed Manufacturing Survey.
Dec S&P 500
Unfortunately having had the right idea I was stopped out of my 1391 long position at 1385 before the market decided to rally 24 handles from its low at 1383.5. Yesterday was another Key Day Reversal coming on top of the previous reversal made 2 weeks ago as we broke the 1406 high made on Tuesday when we traded up to 1408. As I said yesterday I still fancy the market to close the 1421 open Gap from November 7th and this morning on the back of the price action yesterday I am a seller from 1418/1422 with a 1425 stop. I will also look to buy the market from 1400/1405 with a 1397 stop.
Dec DAX
The Dax also had a Key Day Reversal as we made a new low at 7265 before taking out the previous days high when we traded up to 7370. I traded a lot better in the Dax as I bought the market at 7290 and as my 7260 stop was never hit I took a nice gain at 7350 and I am now flat. This morning on the back of the Key Day Reversal and as long as 7260 is not broken this market is very bullish. I will look to reset my long position on any dip to
7345/7375 with a 7330 stop as I look for the Dax to trade up to the 7420/7450 area.
Dec BUND
The Bund also worked really well as my 143.00/143.20 target was hit. I took a nice gain on my 142.52 long position from yesterday morning at 143.05 and I am now flat. Today I am a seller on any rally to the 142.95/143.15 level with a 143.40 stop. I am only interested on the buy side if we dip back to the 141.90/142.20 level with a 141.80 stop.
Dec FTSE
The FTSE worked really well as we traded down to my 5750/5770 target area and I took a nice gain on my 5820 short position which I covered at 5762. This morning I am a seller from 5840/5860 with a 5875 stop.
Nasdaq 100 Rolling Contract
The Nasdaq also had a key day reversal yesterday and this morning I have raised my sell level to 2690/2700 with a 2720 stop as I look for the market to take out the 2681 open Gap.
Euro/USD
The Euro also worked really well as I bought the market at 1.2885 and I took a nice gain at 1.2930 last night and I am now flat. This morning I am a seller on any rally to 1.2995/1.3020 with a 1.3040 stop and I will also look to buy the market on any dip to 1.2860/1.2890 with a 1.2850 stop.
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