Hurricane Sandy closed Wall Street both yesterday and today which is the first time since 1888 that weather has prevented the NYSE from opening. They hope to open tomorrow (Wednesday) and, as a result, volumes across the board in all markets are extremely light. In Europe, Italy issued 6 Month Bills ahead of the important 7 and 10 year Auction this morning. Spanish Retail Sales were shocking, slumping 10.9% year on year whilst UK Consumer/Mortgage Lending Data was again on the weak side. ECB Board member, Nowotny, said that the Central Bank would not be taking any haircut on Greek Debt which resulted in the Greek stock market falling 6.3% and thus putting more pressure on Greek banks.
The Equity markets are higher this morning helped by the much better than expected third Quarter results from Deutsche Bank where investment based revenue exceeded expectations.
Note: As the regular cash US Equity markets are closed today, the futures markets for all US Equities will close at 8.15am Central Time which is 1.15pm GMT.
Dec S&P 500
The S&P dropped into my buy zone overnight with a 1393 low. I had an order to buy at 1395 and I have taken profit this morning at 1405 and I am now flat. I think the market will trade higher tomorrow’s month end when the NYSE reopens. This morning I will look to buy a pull back to 1398/1402 with a stop a 1392 which is just below the low made overnight. If the S&P continues to rally I will be a seller from 1415/1419 with a 1423 stop. I am also aware that we still have a Gap left from 1431 since last Monday and we could well fill this Gap before the markets trades lower.
Dec FTSE
The FTSE traded down to my 5740 buy level yesterday and I have taken profit this morning at 5802 and I am now flat. I still like the FTSE and I will be a buyer on any dip to 5750/5770 with a 5739 stop which is just below yesterdays low. I do not want to be short the FTSE at this time.
Dec DAX
I was extremely unlucky in the Dax yesterday as I had an order to buy at 7170 but the low was 7173 and we are now 100 pips higher. This morning if the Dax continues to rally I will be a seller from 7320/7340 with a 7360 stop. I will also be a buyer on any dip to 7220/7250 with a 7195 stop.
Gold – Rolling Contract
Gold just missed my 1701 buy order with a 1705 low. I will leave my buy range the same as yesterday 1698/1703 with a 1678 stop. Again I am trading in smaller size with a wider stop given the volatility. The Comex Metal and Nymex Energy markets will open as normal today and they will have a normal day’s trading.
Dec BUND
The Bund traded up to my 141.70 sell level. It has now rallied 300 points on the back of the weak equity markets and I think it can trade back to the 140.90/141.20 area where I will look to take profit. I will lower my stop to 141.85.
Euro/USD
I still don’t have any edge in the Euro at the moment and I am going to continue to stand aside as there is money to be made in the other markets that I am trading as outlined above.
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