A disappointing set of US Payroll No’s on Friday set the tone for lower Equities and lower Bond yields in limited trading over the Easter weekend. The poor headline numbers are likely to increase the expectations of more QE thus leading to a weaker US Dollar over the interim. We will get more clarity on this when the Beige Book is released later in the week.
Elsewhere the focus on Spain’s problems increases with Bond yields back over 5.8% as the Government discusses its latest austerity measures.
S&P 500
After my update on Thursday the Equity markets fell hard with the S&P falling to 1383 and into my buy area. It then rallied to 1398 where I was able to take profit and I went flat ahead of the Non Farm Payrolls on Friday. I am still flat and I want to buy from 1370/1375 with a 1368 stop. 1370 is the critical level for the bull market and as we are oversold here I want to go long with a tight stop looking to close the gap back to 1389 where I plan to go flat and put on a new short with a 1395 stop.
FTSE
The FTSE dropped down to my buy area on Friday and then rallied back to 5680 where I went flat. The FTSE is back down to my buy area at 5600 and I am long here with a 5570 stop as we are oversold and at the bottom of the Bollinger Band. I plan to sell on any rally back to 5650/5680 with a 5700 stop.
DAX
The Dax entered my buy zone on Thursday and I am still long with a 6690 stop. I will look to go flat on any move back to 6760 and I will go short from 6770/6800 with a 6820 stop.
EURO
The Euro never gave me a chance to go short before entering my support level at 1.3050. I will buy in front of this level with a 1.30 stop. I still want to sell on any rally back to 1.3190/1.3220 with a 1.3250 stop.
Crude
Crude fell hard yesterday. 100.60 is the key level and we hit this level before rallying hard. I will buy on any pullback to 101 with a 100.40 stop
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