Yesterday, the NYSE was closed for three hours due to a ‘technical’ hitch, leading to a sell-off in US Stocks while European equities closed higher. Commodity prices fell, Bond Yields were a little lower and the US Dollar was finally lower against the G3 but stronger elsewhere. Measures of market volatility were mostly higher. China’s equity markets continue to fall yesterday, the real extent to which we can’t say: given many stocks are suspended and others are limited in the amount they decline.

For anybody following my New Platinum Service it made 110 points yesterday having had its first major loss on Monday since I started this new service two months ago with a 165 point drop. Last Friday the service generated a 375 point gain following June’s 3045 point positive return.

While the comparisons to 2007/08 are being made, this is not the financial crisis mark II, but a different situation. But negative nonetheless. It is early days, there are possible traditional Monetary policies to be put in place for example, but the level of concern it is creating, and volatility, and impact on Commodity prices have the potential to leech into broader markets. Australia included. So for today, we are in Netflix mode, rather than the soap opera that is NBC. To follow the linkages, monitor this trail: The decline in Chinese equities has slowed demand for cars (they were negative for the first time in two years in June), which lowers the demand for steel, which lowers the price of Australian iron ore, which weighs (further) on Housing prices in the Pilbara.  Iron ore dropped 10% yesterday and is now below $50, the lower it goes the more it drops below break-even for many of the new mining entrants. That is why mining companies are seeing lower prices outside of China.

There was little new information from Greece yesterday, it does appear that they must have a credible proposal to take to the Institutions by midnight Thursday, otherwise they are out. That is the hardline stance, but we have seen that soften before. A positive was the holding steady of the ECB’s ELA, which while keeping the capital controls, does allow the banks to remain solvent. EUR was supported on this.

In the US, the FOMC minutes take a backseat given we know that events have overtaken them. Members were balanced but saw some risks from Greece and China. There was a note of rising wages, but mostly the news was modestly dovish. The Fed’s Williams spoke and noted that they could still hike in 2015 and that Chinese stocks were not an important concern for the US.

Markets are opening firmer this morning on the rebound in Asian stock markets. However ECB President Dragi has already been on the news-wires stating that a Greek deal will be really difficult.

This morning on the economic front we have already had German Trade Numbers which came in slightly weaker than expected. The Bank of England meet today and they will announce their latest Asset Purchase at 12.00 pm. At 1.30 pm we have the US Weekly Jobless Claims and this is followed at 2.45 pm by the Bloomberg Consumer Comfort Index. Finally at 6.00 pm the Fed’s George will speak on the Economy in Oklahoma. Remember these data releases will only provide a small distraction to the ongoing crisis in Greece and China especially ahead of this evening’s EU Summit.

September S&P 500

The S&P plan worked well yesterday as yet again the market bottomed at the now major support level and 200 day Moving Average at 2035/2040. When and if this level is broken we will definitely see an acceleration of the market to the downside. It was very late in the US trading session before the S&P traded lower to my 2038 buy level and after a nice rally overnight I have been able to cover this position at 2049 as outlined earlier to my Platinum Members and I am now flat. These markets are not easy to trade and this was my only new position that got executed yesterday but thankfully we did not get caught up in this huge volatility. To complicate matters the NYSE had to halt trading for over three hours as participants wondered was it a Cyber attack or something more sinister but the big question was why did take so long to fix the problem. This morning I will again be a small buyer of the S&P on any move lower again to 2037/2043 with a 2033 stop. If I am taken long and subsequently stopped out of this position I will be a more aggressive buyer from 2012/2022 with a 2003 stop. Despite the negative price action I do not want to be short of the S&P ahead of tonight’s EU Summit.

EUR/USD

Finally the Dollar is beginning to weaken especially after the Fed released its latest Minutes which were more dovish than initially reported. I was extremely unfortunate to get stopped out of my long 1.0965 position on Tuesday near the lows of the day at 1.0925 especially with the Euro trading back above 1.11 this morning. To me the price action in the Euro is very positive as despite the prospect of a Greek exit the Euro refuses to go lower. Today I will move my buy level slightly higher to 1.1010/1.1050 with a 1.0970 stop which is just below yesterday’s low print.

September Dollar Index

I am still flat the Dollar and today I will lower my sell level to 96.80/97.20 with a 97.50 stop.

September DAX

The price action in the DAX is still very negative as despite the other major Indices been up strongly this morning the DAX is struggling at the 10800 level. As I mentioned yesterday the DAX has critical support at 10600 and a break and close below here will be very negative. Today I will only raise my buy level slightly to 10590/10650 with the same 10530 stop. I still do not want to be short the market ahead of tonight as deep down I still believe that another deal to kick this problem down the road will some how get agreed.

September FTSE

The FTSE on a Daily Chart looks very bearish and has been a downside leader for the recent sell-off across the major stock Indices especially since we made our 7095 high in April. The FTSE has major support from 6370/6420 where the 200 day Moving Average comes in and also this level equates to a long term trend-line from 2011. So a break and close below here will be very bearish. I am still flat the FTSE and today I will be a small buyer on any further move lower to 6390/6440 with a 6355 stop.

Dow Rolling Contract

The Dow had another bad trading session yesterday as the whip saw in this market continues. The fact that we have the five confirmed Hindenburg Omen’s from June is not helping matters. I am still flat the market and today I will raise my buy level slightly to 17460/17520 with a wider 17390 stop.

September BUND

Shortly after I posted yesterday morning the BUND just sold off and I am still flat. With so many Hedge and Pension Funds trapped higher well above the market after the dramatic sell-off that we had from the 160 price level, I find it very difficult to be long this market. Today I will lower my sell level to 153.40/153.80 with a 154.30 stop which is just above yesterday’s high.

Gold Rolling Contract

Unfortunately I covered my long 1154 position for a breakeven yesterday especially with Gold trading higher this morning. Today I will again be a small buyer from 1145/1154 with the same 1139 stop.

Silver Rolling Contract

I am still flat Silver having been stopped out of my 15.60 long position on Tuesday at 15.20. Today I will raise my buy level to 14.70/15.10 with a 14.35 stop.