There was a positive tone to the markets as Germany voted in favour of the Greek bailout. US markets opened on their lows and then rallied all day as the data from the Housing Market gets more favourable. For a continued US economic recovery the housing sector is a key factor in ensuring sustainable growth and it appears that it is on its way.The very volatile Durable Goods are released at 1.30 pm today.
S&P 500
The S&P tested our 1351 level with a low of 1353 and the rallied to 1370. This morning we are trading at the highs of May 2011 at 1373. I want to go flat here and see how the market behaves. Despite the two month rally in 2012 there is a two month downtrend in Breath which is a warning of an impending top in the market. As long as we are above 1350 the market is still bullish and I am waiting for a sell extreme to go short.
EURO
The Euro tested 1.3370 and then rallied a big figure. I want to go short from 1.3480/1.3520 with a 1.3550 stop.
USD/JPY
The USD/JPY hit our 80 level and is now back at 80.60. Staying long here with a 79.90.stop.
DAX
I am short the DAX, with a small position, from 6850 and will sell more near 6920 with a 6950 stop. The DAX is the heaviest of all the stock markets and a break of yesterdays low at 6744 should see the market trading down to 6650.
Bund
The Bund has had a nice move from 138.00 level. I am taking profits here and looking to go short from 139.90/140.20 with a 140.50 stop.
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