Yesterday was probably the quietest day in a long time as the summer doldrums continue. The Equity markets ended the day basically unchanged with the Euro stronger in the absence of any bad news. Equity markets shrugged off the 1.5% fall in the Shanghai Composite Index which reflected the disappointing trade and loan data from China last Friday. After no economic news at least we have some potential market movers today. Greece are auctioning short term treasury bills, Italy also has a bond tender this morning and we also have Euro-zone GDP and the EC ZEW survey. In the US we have Retail Sales and the NFIB Small Business Index which will all be closely watched by the market.
Sept S&P 500
The S&P had one of its quietest sessions of the year but at least the market dropped down to my 1396 buy area with a 1394 low before a late rally took the market back to the 1402 area where I was able to take a nice profit. I am still convinced that as long as we stay over 1390 we are going to go back and challenge the 1420/1425 area. Today I will look to go long from 1395/1400 with a 1391 stop. Again I only want to go short from 1418/1423 if we get this high.
EURO/USD
The Euro had a nice rally yesterday and I was able to go short at 1.2360 with a 1.2375 high. I took profit at 1.2330 and I am now flat. With the markets so quiet you have to take your 30/50 points profit when they are available. Today I will only go short from 1.2420/1.2450 with a stop above 1.2470. If I am taken short I will look to take profit from 1.2350/1.2380.
Silver
Silver is another market with a tight range and I am still long from 27.90. I will leave my stop the same at 27.60 and if we break 28.40 I will raise my stop to 28.20. I have this position for nearly a week and I am still convinced we will break higher.
USD/JPY
After the really weak GDP number from Japan yesterday the authorities have no choice but to try and weaken the Yen. I will look to go long again from 78.10/78.40 with a 77.90 stop.
Sept BUND
The Bund just missed my buy level yesterday and I still want to go long from 142.20/142.40 with a 141.95 stop. If I am taken long I will look to take profit from 142.80/143.10. A closing break over 143.20 will be short term bullish.
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