Equity markets got crushed today as the fallout from last Friday’s Non-Farm Payrolls continued. Spanish Bond yields rose above 6% and today the markets’ focus turns to the Italian Auction due later this morning. The rapid deterioration in view regarding the Debt Auction in Spain would normally see a sharp move lower in the Euro across the board. The fact that it has not done so is a reflection of the the USD’s woes if QE3 is a reality. Today we have the Beige Book and Fed’s Bullard is speaking.
S&P 500
I was amazed that we did not have more support at 1370 and I was stopped out of my long at 1368. The market sold off to 1353 and since rebounded to 1362. The market is very oversold and the McClellan is at -315. I will buy from 1353/1358 with a 1350 stop looking for a move back to 1370/1375 which will be strong resistance. If I take the planned long, I will take profit at the resistance level and look to reverse my position and go short from 1378/1383 with a 1388 stop.
EURO
The Euro hit my buy level at 1.3050 and I am very impressed how well the Euro is trading. I will leave a break-even stop and look to take profit at 1.3150/1.3180.
FTSE
I was stopped out of my FTSE long at 5570 and as we are outside the Bollinger Band I went long again at 5530 with a 5490 stop looking for a retest of 5600/5620.
USD/JPY
USD/JPY has had a nice correction and we are now back to my buy zone. I am long from 8060 with a 8020 stop looking for a move to 8130/8150.
Crude
I bought crude at 101 and I will raise my stop to 100.60 looking for a move to 101.70/102.00.
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