A very quiet day as the market waited for the EU finance ministers to agree a package on Spain. They agreed on a finance package for a bailout of Spain’s troubled banks saying that €30billion will be available by the end of the month. The Finance ministers will return to Brussels on July 20th to finalise the terms. As part of the agreement, all 27 countries are to agree to a 1 year extension until 2014 of Spain’s deadline to achieve a budget deficit of 3%. The total bailout will probably be €100 billion but the exact amount won’t be known until September when individual examinations of different Spanish banks have been completed. In other news, Alcoa got the earnings season off to a positive start reporting earnings of 6 cents per share versus expectations of 5 cents. Later today Fed’s Bullard is speaking.
Sept S&P 500
No change from yesterday as I am still long at 1346. I will leave my stop the same at 1339 and I will look to take profit from 1354/1357. If I am stopped out I will be an aggressive buyer in front of 1321.
Silver
I am still long Silver from the 26.95 and it just missed my 27.60 profit level with a 27.51 high. I will raise my stop to 27.00 or if the market trades back to 27.50 first I will look to cover in this area. If I am stopped out at 27.00 I will look to reset from 26.30/26.50 with a 25.95 stop.
Sept Euro
The Euro traded down to my 1.2270 buy level and I am still long. I will leave my stop the same at 1.2250 and I will look to take profit at 1.2350. I do not want to be short the Euro at this time as we are very oversold.
Sept DAX
The Dax also traded down to my buy level and I am long at 6375 with a 6350 stop. I am disappointed that the Dax did not get a bigger reaction to the Spanish Bank Bailout and as a result I only have a small position. I will look to take profit at 6420/6435.
Sept Bund
I am still short the Bund at 144.00 and I will leave my stop at 144.30 which is just above yesterday’s high. I will look to take profit if we drop to 143.60.
Sept FTSE
I was stopped out of my small 5600 long at 5580 and I will leave the market alone as I want to see how we trade over the next 24 hours.
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