There was a big bounce in the Equity markets yesterday driven by an easing of fears regarding Spain’s funding, better European data and a more optimistic World GDP forecast from the IMF. Spain appears to be addressing its real estate problems at the banks and managed to raise short term funding relatively easily. The market was also helped by the ZEW survey at a robust 40.7 and Earnings were better than expected out of the US. Today we have the minutes from the BOE along with the Philly Fed and Housing Sales out of the US.
S&P 500
The Williams Indicator and Bollinger Bands really worked well for all Equity markets yesterday as we got a nice buy signal across the board. I added to long position when the market broke 1378 and I have now gone flat at 1385. Today I will look to buy on a pullback to 1377/80 with a 1375 stop. I will also look to sell from 1391/1394 with a 1396 stop as this level will be good resistance.
USD/JPY
The USD/JPY finally rose from the bottom of its Bollinger Band thus correcting it’s oversold reading. I still like this position and I will raise my stop to 8100 which will ensure a nice gain. I will look to take profit at 8160/8190 as 8200 should be strong resistance
FTSE
The FTSE followed my roadmap and I was able to take profit at 5700 on my 5610 long and I am now flat. We are now approaching the breakdown level of 5750 and I want to sell from 5740/5770 with a 5785 stop looking for a retest back to 5680 where I will look to cover and go long again.
Natural Gas
Natural Gas continues to fall and I have bought here at 1.93 in small with a 1.69 stop. I will add to my long position if we break 2.20.
EURO
The Euro traded down to my buy level at 1.3100 however as I am not convinced with this trade I will leave a 1.3070 stop on this position.
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