US Stocks rose again yesterday after the S&P 500 Index climbed for four straight weeks with Exon Mobil Corp and US Steel Corp leading a commodity rally whilst investors awaited data on employment and economic growth later in the week. Exon Mobil increased 2.5% and AK Steel Holding Company gained more than 4.4% on an industry upgrade by Goldman Sachs Group. The S&P ended the day up 0.4% whilst the Dow closed up 0.2%. About 5.7 Billion shares changed hands which was the slowest day in two weeks.
76% of the 374 S&P 500 Companies that have reported earnings so far have beaten analysts estimates, according to data complied by Bloomberg, with income for the broad Index increasing by 4.1% for the third Quarter. Factory Orders came in at 1.7% versus 1.8% expected after falling 0.1% the previous month. There was little or no other news yesterday on what was one of the slowest trading days of the year so far.
This morning on the economic front we have UK Services PMI at 9.30 am followed by Euro-Zone PPI. Later from the US we have the ISM Non Manufacturing Index as traders wait for the ECB on Thursday and the US Unemployment Report on Friday.
December S&P 500
The S&P just missed my 1763 sell level before having a nice sell off only for the market to rebound later in the day. The S&P finally hit my 1763 sell level near the close and I am now short in small size with the same 1771 stop. Today I will move my buy level higher to 1750/1755 with a 1748 stop.
Euro/USD
Unfortunately the Euro never retested the lows made early yesterday morning before trading higher and I am still flat. Today I will leave my sell level the same at 1.3550/1.3580 with a 1.3610 stop. I will move my buy level slightly higher to 1.3455/1.3480 with a 1.3440 stop.
December DAX
Yesterday was one of the quietest trading days for the Dax this year as the market just goes on hold ahead of the ECB rate decision on Thursday. The Dax never hit my buy level before trading higher and today I will move my buy level to 9000/9025 with a 8980 stop. I still do not want to be short the Dax at this time.
December FTSE
The FTSE also traded higher yesterday in a very quiet trading range. Today I will move my buy level higher to 6710/6730 with a 6685 stop. Just like the Dax I do not want to be short the FTSE at this time.
Dow Rolling Contract
The Dow worked well yesterday as the market traded up to my 15660 sell level before having a nice sell off and I was able to cover this position at 15610 and I am now flat. Today I will raise my sell level to 15670/15700 with a 15720 stop. I still do not want to be long the Dow at this time.
December BUND
Shortly after I posted yesterday morning the Bund was trading at my 141.95 sell level. I do not want to risk to much on this trade and I will leave my stop the same at 142.25. Given how low Bund Yields are trading I do not want to be long the Bund at this time.
Gold Rolling Contract
No change as I am still a small buyer on any dip to 1295/1302 with the same 1288 stop. I will also be a small seller on any rally to 1327/1334 with a 1338 stop.
Silver Rolling contract
No change as I am still a small buyer of Silver on any dip to 21.20/21.50 with a 20.95 stop I still do not want to be short Silver at this time.
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