A positive session for Europe yesterday but there still lacks an overwhelming theme and momentum. The USD was lower despite a decline in expectations of more monetary easing. US Equities hit a new high but the S&P 500, as expected, ran into very strong resistance at 1425 and is down sharply this morning at 1408. The UK is showing the way for Greece with a worsening in its fiscal intake. It (UK) has gone down the road of fiscal austerity for which the market has granted GBP the benefit of the doubt. Yet the weaker growth has limited tax revenue and raised borrowing needs for the Government. Greece faces the same challenge and in news yesterday, sources were saying that Greece needs an austerity package of 13.5bn Euro rather than the 11.5bn previously indicated, due to lower revenue. The news from Europe is positive with periphery yields lower and German politicians saying that Greece will get some concessions countering calls for no leeway
earlier in the week. Today is a busy day for data from the US with Existing Home Sales, MBA Mortgage Applications followed by the Minutes from the last FOMC Meeting. 

Sept S&P 500

The S&P worked really well yesterday as we traded down to my buy area with a 1413 low before we rallied to my sell level at 1425 where the market hit a wall of resistance and reversed very quickly. It is now clear that the 1420/1425 is going to be very hard to break and it is now time to set up shorts against this level as we approach the traditionally bearish months of Sept and Oct. I took nice profit yesterday and I am now flat. I do not want to be long and if we manage to close the down Gap that has opened this morning I will be a seller from 1411/1414 with a wider 1420 stop.

Sept EURO

The Euro is very tricky to trade as we have closed above the very important 1.2450 resistance area but on the other hand we have the breakdown in equity markets this morning which has always led to a stronger USD. I am going to give the Euro the benefit of the doubt and I will be a buyer from 1.2420/1.2450 with a 1.2395 stop. I am only going to trade in small with a wider stop given my above concerns.

Sept BUND

The Bund also worked really well as we dropped down to my buy level with a 141.27 low and then traded back to the 142.00 area this morning. I managed to take nice profit and I am again flat. I still like the Bund and I will use any sell off to the 141.50/141.80 area to get long. If I am taken long I will leave a 141.30 stop and I will look to take profit from 142.60/142.90.

Silver

It just shows how important this 28.40 level in Silver was as we had a nice move up yesterday to the 29.50 area. I have taken profit this morning at 29.40 and I am now flat. The market is overbought and I will look to reset my long position on any dip back to 28.70/29.00 with a 28.60 stop.

Sept DAX

The Dax just missed my 7110 sell level with a 7108 high and we are now back testing the very important 7000 level. Today I will look to go long, in small, on any dip to the 6980/7010 area with a 6970 stop. If I am taken long I will look to take profit from 7060/7090.

USD/JPY

No change here, I still want to go long from .7880/.7910 with a .7870 stop on any long
position.