Re-election of Bernanke could spur risk appetite again Christian Blaabjerg, Filed in: 3 numbers to watch 27 January 2010 at 8:40 GMT Non-Independent Investment Research Daily Trading Stance It is now more or less obvious that Bernanke will be reelected as Fed Chairman. That will be supporting risk, so we are looking for a bounce in the markets over the rest of the week. Furthermore, New Home Sales have the potential to surprise on the upside, so we recommend being long stocks and risk over the figures. Therefore we have a “buy on dips” stance for risk today – especially ahead of the FOMC Decision and Statement tonight. Calendar Economic Data Releases Country Time (GMT) Name Saxo Consensus Prior US 15:00 New Home Sales MoM (DEC) 4.3% 3.0% -11.3% US 19:15 FOMC Rate Decision 0.25% 0.25% Earnings Releases Country Time (GMT) Name EPS exp. EPS prior Comment US 07:30 Boeing 1.361 -2.220 US 07:30 Caterpillar 0.280 0.440 US 08:30 ConocoPhilips 1.140 1.020 FX FX Daily stance Comment EURUSD 0 Expect consolidation within 1.4020 – 1.4120 range. Await breakout. USDJPY 0 Seen ranging around 89.30 retracement lvl. Suggest 88.80-89.70 parameters. EURJPY 0 Capped at 126.35 but ranging 125.0-126.20. GBPUSD 0/- Look to sell rallies to 1.6160-70 area for a retracement back to 1.6085. Stop abv 1.6205. AUDUSD 0/- Prefer to sell rallies to 0.9050 for test of 0.8960, poss 0.8930 sht-term. Stop abv 0.9110. FX Options FX-Options Comment EURUSD Front end started off strong but later saw sellers as spot came off the lows and later found a base. There was also a buyer of 26 Mar 1.46 in 1 bio. USDJPY Spot drops to 8915 and keeps vols well supported. No scramble for downside gamma but back end vega sees good bids along with the risk reversals. AUDUSD Vols remain bid throughout the Asian session. Market is rather long gamma in this spot range so front end likely to get offered if spot ends up above 9050 after the FOMC. Equities Equities Daily stance Comment DAX 0/+ Buy on dips towards 5640 targeting 5680. S/L below 5625. FTSE 0/+ Buy on dips towards 5250 targeting 5290. S/L below 5230. S&P500 0/+ Buy on dips towards 1088 targeting 1100. S/L below 1084. NASDAQ100 0/+ DJIA 0/+ Futures Commodities Daily Stance Comment Gold 0/+ Buy at the break of 1105 and target 1115. Stop below 1100. Silver 0/- Sell at the break of 16.70 and target 16.50. Stop above 16.80. Oil (CLH0) 0 Neutral. Tweet Like LinkedIn Share Google+ Previous Next Comments Please sign in to comment or ask the author a question about this article. Recommended Recommend Unrecommend Recommend Tweet Like LinkedIn Share Google+ Related articles Watch out for US housing data today Temporary retracement in risk, look for buying opportunities on dips Bank of England minutes the main event today US Existing Home sales may surprise to the upside and lead equities higher Dollar finds buyers again Topics This post appears under the following topics... GBPUSD EURJPY forex AUDUSD Housing Starts and Completions macro FX Options commodities FTSE100 equities USDJPY gold silver DAX EURUSD DJI