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Stocks were rejected yesterday at new highs. Will we have a retest today?

Filed in: Equity Update
26 August 2009 at 8:17 GMT

Daily Trading Stance

  • Yesterday's US figures were somewhat better than expected. The home price data showed some signs of stabilization with the S&P/Case-Shiller Quarterly HPI showing the first QoQ INCREASE since H1-2006. This increase, however, was not corroborated by the FHA and NAR price data. The Conference Board Consumer Confidence was at 54.1 - higher than expected (47.9).
  • Despite the generally positively surprising data, stocks were rejected at new highs. The O/N market development suggests that risk-willingness is still intact with the JPY, Treasuries and CDS/Itraxx down and AUD holding up relatively well.

 

Calendar

Economic Data Releases

 

Country

Time (GMT)

Name

Expectation

Prior

Comment

GE

08:00

IFO Business Climate (AUG)

89.0

87.3

 

US

12:30

Durable Goods Orders (JUL)

3.0%

-2.5%

We expect 1.5%

US

14:00

New Home Sales MoM (JUL)

1.6%

11.0%

 

 

Earnings Releases

 

Country

Time (GMT)

Name

EPS exp.

EPS prior

Comment

BE

13:40

Dexia SA

0.230

 

 

UK

-

Tullow Oil PLC

0.030

 

 

UK

-

Antofagasta PLC

0.252

 

 

FX

FX

Daily stance

Comment

EURUSD

0

Ranging 1.4250-1.4330. German IFO may see breakout either way but 1.45 still caps

EURJPY

0

Likely to trade a tight 134.20-135.20 range

USDJPY

0/-

94.30-50 seen capping for a slow retracement back to 93.50 suppt.

GBPUSD

0

1.6275 looks key suppt for rebound to 1.64. Sell break below, else 1.63-64 range

AUDUSD

0

Likely ranging between 0.8330-0.8400. await breakout


FX Options

FX-Options

Comment

EURUSD

Buyers still looking for short dated EUR calls and market seems to be looking for a clear

 

break through 1.44 shortly. A bounce back towards 1.42 should see vols ease again.

USDJPY

Mainly quiet session with vols coming in heavy. Unlikely to see risk reversals or

vols spike unless we break under 9200. Back end remains well supported.

AUDUSD

Vols are softer as spot continues to trade inside established ranges. Few bids seen over the

 

 


Equities

Equities

Daily stance

Comment

DAX

0/+

Buy around 5540 targeting 5575. S/L below 5525.

FTSE

0/+

Buy around 4900 targeting 4935. S/L below 4882.

S&P500

0/+

Buy around 1022 targeting 1033. S/L below 1018.

Nasdaq100

0/+

Buy around 1630 targeting 1644. S/L below 1620.

Dow Jones

0/+

 


Futures

Commodities

Daily Stance

Comment

Gold

0/+

Buy around 945 and target 956. Stop below 940.

Silver

0/+

Buy at the break of 14.50 and target 14.80. Stop above 14.30.

Oil

0/+

Buy on dips towards 70.50 and target 73. Stop below 69.30. 

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