All eyes today will be on the ECB meeting and especially the press conference that follows. It will be interesting to see if Dragi takes a more negative view on economic risks and if he hints at a further rate cut, which Europe badly needs. April PMI in the Eurozone was very poor yesterday coming in at 45.9 and Unemployment ticked up to 10.9% which led to a sharp fall in the Euro and European Equities especially in Spain which is now back to its low of 2009. Today we have the Weekly Jobless Nos in the US – these have been rising over the last few weeks and follow the disappointing ADP Nos yesterday.
NOTE: All comments below refer to the June Futures Contract in each instrument
S&P 500
The S&P dropped into my buy zone after the weak ADP nos but quickly bounced off the 1390 level. I am long at 1394 and I will leave my stop below 1390. It is amazing that every time the market sells off buyers emerge to buy any weakness. I still look to take profit from 1407/1410.
Euro/USD
My fears over the the weak Euro emerged after the very weak data enabled me to buy the Euro at 1.3160. I dont like the way the Euro is trading and I have gone flat this morning. I want to go short from 1.3180/1.3220 with a 1.3240 stop as I look for a test of 1.3050.
Natural Gas
I was taken out of my nice long position for a stop profit at 2.28 and I am now flat. I will reset my long position on any pullback to 2.10/2.14 with a 1.99 stop.
USD/JPY
The USD/JPY entered my buy zone with a low of 8000. I went long at 8010 and again I am disappointed at how strong the yen is trading. I will leave a breakeven stop on this position and will look to take profit on any spike to 8050/8060.
Crude Oil
Crude had a sharp sell off yesterday and I went long at 105.30. I will leave my stop at 104.80. As crude is such a volatile contract I only have a small position and I will look to take profit from 106.00/106.30
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