Yesterday was a very quiet day with Equity markets down all day only to stage a sharp and large rally in the last 30 minutes of trading in the US. Markets have been very subdued as they are playing a waiting game in relation to the US Presidential election which is in two weeks today, an EU resolution and possibly Chinese Monetary Policy easing. The last Presidential debate took place overnight in the key swing state of Florida and this debate was on US Foreign Policy. Nothing of note occurred with Obama citing Foreign Policy wins as Romney mostly agreed. Germany stated again yesterday that it was not in favour of using the ESM funds to purchase Greek debt. Yahoo earnings came out after the close and were better than expected, possibly providing better sentiment.
This morning we have Euro-zone Consumer Confidence Index and later in the US we have the Richmond Fed Manufacturing Index, a 2 Year Note Auction and the two day FOMC Meeting begins.
Dec S&P 500
Yesterday was a day you had to very patient and I waited quite a while for the S&P to enter my buy level which it did late on and a I went long at 1421. The market looked like it was going to keep trading lower until we had a huge spike higher in the last 30 minutes of trading and I was able to take profit at 1430 and I am now flat. The market will probably trade quietly higher in to the FOMC announcement tomorrow and this morning I will look to go long again from 1417/1421 with a 1415 stop. If we trade 1415 I will go short in smaller size with a 1423 stop. If I am taken long I will look to take profit from 1428/1431.
Euro/USD
A very quiet day again in the Euro as the market is stuck in the 1.3000/1.3100 trading range over the last few days. Today I will keep my buy level the same as yesterday and I will look to go long on any dip to 1.2990/1.3010 with a 1.2975 stop. If I am taken long I will look to take profit from 1.3050/1.3070.
Dec FTSE
The FTSE worked very well and I was able to take profit at 5880 on my 5845 long position before the market sold off into the close. This morning the market is lower and I will look to go long from 5785/5805 with a 5770 stop.
Dec DAX
Similarly to the S&P, the Dax finally entered my 7335 buy level and in contrast to the way the Dax looked bid for last 2 weeks it was very much weaker yesterday and traded very heavy. I covered my position at 7340 on the back of the S&P rally and I am now flat. This morning I will be a seller on any rally to 7330/7350 with a 7360 stop and I will be an aggressive buyer from 7200/7220 with a 7180 stop. A break and close below 7200 will be very bearish.
Gold – Rolling Spot
No change as I want to go long on any dip to the 1690/1695 level with a 1685 stop.
Dec Crude
Crude has been trading wildly over the last month and is on the defensive this morning. The 8680/8750 is huge support going back to the end of July and I will be a buyer in this range in small with a 8650 stop.
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