Stocks are struggling to make fresh highs, but in holding close to these recent highs we can say that the Yield and Equity moves reflect growing investor confidence in economic recovery. Bond Yields pushed up again as investors continue to sell Bonds and buy Equities. 10 Year Bond Yields are now at 2.4%, a rise of 40 basis points in a week. Today we have the minutes from the BOE and in the US, the February Existing Home Sales.

S&P 500

The S&P is very quiet. Having traded up to my sell level on Friday we then traded down to 1393 yesterday morning and then spent the rest of the day grinding higher on the back of Apple Inc. I took my profit yesterday morning and I am flat now. It is very hard for the market to sell off as long as Apple and the banks continue to trade higher. I will buy on a dip to 1395 and sell on any rally to 1412 with a 5 point stop.

Euro

The US Dollar fell by 0.5% against most currencies yesterday and the Euro is now back above its 100 Day Moving Average at 1.3207.  I have bought the Euro this morning at 1.3200 with a 1.3160 stop. I am looking for a retest of 1.3280/1.3310

DAX

The DAX had a nice move down from the 7200 area and I have now gone flat again. I will sell on any rally to 7200 as this is now the key level with a closing stop over 7220. If the market dips down to 7070 I will go long with a 30 point stop. We should have good support from 7070/7090.

Bund

The Bund has entered my buy level and I am long here at 135.60 with a 135.25  stop looking for a retest of 136.20/1.3650.

Gold

No change from Friday’s update.

USD/JPY

I am still long and I have kept my stop at the same level of 8330 looking for a test of 8450/8480.