Most markets continue to trade with little direction at present as Europe’s Finance Ministers and leaders get back to business after the summer break. Meetings are scheduled between the German and Greek Finance Ministers for Thursday ahead of a leaders meeting on Friday. Angela Merkel is to meet Hollande on Thursday. Ahead of those meetings there has been chatter about a possible Greek exit from the Euro from the Finance Minister of Finland or no exit from the German Foreign Minister. The Bundesbank remains against ECB purchase of peripheral Government Bonds in its monthly report which was published yesterday but an ECB representative said there has been no discussion or decision taken by the Government Council.The US Chicago Fed Manufacturing Index came in slightly worse than expected and after a small sell off in equities, the market rebounded into the close.This morning Spain is to sell some Treasury Bills. In the UK we have Public Sector Net Borrowing and CBI trends total orders. Later this afternoon we have Lockhart of the Fed speaking in Atlanta.
Sept S&P 500
The Low Volatility continues but at least the S&P dropped down to my 1407/1411 buy area with a 1409 low. I went long at 1410 and I took small profit at 1415. This morning I want to reset my long position from 1412/1416 and I am going to move my sell level higher to the 1425/1430 area with a 1432 stop.
Sept DAX
The Dax worked really well yesterday as we traded up to my 7070/7100 sell area with a 7086 high before selling off to my take profit area at 7010 giving me a nice profit and I am now flat. As I have been saying for the last 2 months, it is so hard to be short the market as you are fighting the Central Banks. This morning, the Dax is trading higher and I will look to go short from 7110/7140 with a 7160 stop. Again if I am taken short I will look to take profit in front of 7060.
Sept BUND
The Bund also worked well yesterday and I was able to take profit on my 141.25 long at 141.95 and I am now flat. I still want to go long on any pullback to the 141.00/141.30 area with a 140.95 stop. Again if I am taken long I will look to take profit from 141.70/142.00.
Sept FTSE
The FTSE is so quiet and listless that I have cancelled my sell order to see how we trade over the next few days and therefore I am going to stay flat for now.
Silver
The big breakout that I have been looking for has finally arrived. Today I want to go long from 28.45/28.85 with a closing stop below 28.40. This 28.40 is key and as long as we stay over this level I will look for Silver to test 30.00 over the next few days.
USD/JPY
I am still looking to buy any dip from .7880/.7920 with a .7870 stop as I look for USD/JPY to test .8000 over the next week.
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