US Stocks ended yesterday pretty much unchanged after a mixed trading session whilst European Equity markets continued their theme of out performing the other main indices. This theme has continued this morning with the Nikkei higher by 2.6% as the Yen weakens on news of corporate tax cuts. Otherwise there was no other news of note however that will change this morning with the release of UK PPI, CPI and the ONS House Price Index. This data is followed by the German ZEW Survey and Euro-Zone Industrial Production. Later at 1.30 pm, from the US, we have Retail Sales, NFIB Small Business Optimism and Business Inventories. Later the Fed’s Lockhart speaks on the economy in Atlanta.
September S&P 500
By the time I had posted yesterday morning the S&P was already trading at the 1677 level before following Europe higher and this has continued overnight with the S&P now trading at 1692. Today I still prefer the FTSE and the DAX to the S&P and so I will only be a small seller on any further rally to 1695/1700 with a 1702 stop. If I am taken short and subsequently stopped out I will be a more aggressive seller in front of 1712 with a 1715 stop. If the market dips after the release of the Retail Sales No’s today I will be a buyer from 1680/1685 with the same 1677 stop.
Euro/USD
The Euro just missed my 1.3275 buy level with a 1.3277 low before having a nice rally and I am still flat. Today I will lower my sell level to 1.3330/1.3360 with a 1.3380 stop. I will also lower my buy level to 1.3230/1.3260 with a 1.3220 stop. If the Euro can break back below 1.3200 the Euro will start to look weak again.
September FTSE
The FTSE, having looked weak all day yesterday, is stronger this morning and has broken back above my 6570 buy level. I have gone long here in small at 6570 and I will leave a 6545 stop on this position. If the FTSE can break 6600 I will raise my stop to 6580. My only interest in selling the FTSE is on a rally to 6650 with 6670 stop.
September DAX
The DAX worked really well yesterday as by the time I posted it was trading in my 8235/8265 buy zone. I bought the market at 8265 and after a nice rally I covered my position at 8350 and I am now flat. This morning it is another 90 points higher as this market continues to outperform the US Stock market. Today I will be a small seller on any further rally to 8500/8525 with a 8540 stop. I will also be a buyer on any dip to 8360/8390 with a 8340 stop.
September BUND
The Bund also worked well yesterday as the market had a nice sell-off and I was able to cover my 142.50 short position from last Friday at 142.10 and I am now flat. This morning the Bund is trading below the key 142.00 support zone and if we can close below here it will be very bearish. Today I will be a small seller from 141.80/142.05 with a 142.20 stop. I do not want to be long the market at this time.
Gold Rolling Contract
Gold opened higher yesterday morning and continued to rally all day. Today I will raise my buy level to 1315/1322 with a 1309 stop. I will also buy Gold on a break of 1352 with a 1339 stop.
Silver Rolling Contract
Silver worked great yesterday as the up-move that I have been looking for over the last six weeks has finally worked. As Silver is overbought here this morning I have covered my 20.72 long position at 21.60 and I am now flat. Today I will be a small buyer on any dip to 21.00/21.30 with a 20.65 stop. As long as Silver can stay over 20.70 this market is bullish.
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