Day 2
Situation:
U.S. Markets: down heavily, especially in the last 30 mins. as reversal attempt in the financials faded … again … Techs hammered … esp. the former leaders like AAPL and RIMM.
Asian Markets: Bank of Japan holds interest rates … carry trades recover … Yen itself weakens a bit … recovery of stock markets …
Currencies/Commodities: Yen weakens, Euro, NZ and AUD firm … long live the Carrytrade? …
Events: IEA Monthly Oil Report, ZEW Germany and the DELAYED pending Home Sales Report
Dax: Lost in last trading hour more than 1% (sounds familiar?) … crashed supports on the close, but remains to be seen, whether that will be confirmed today …
supports … 7745/42 … below that I see only a dark hole … 7585/90 … all Future levels … 7740-7720 strong cash levels … below … the “dark hole” …
resists … 7788 … 7830 7860/7870 … 7920 … 7960 … 8070
Ideas: Dax is today an endangered species … standing at the edge … Eurostoxx already gave up … so as US Markets recover, we could see a snap back first … carry trade back on? But show me the proof.
Strategy: Below 7720 cash on an hourly close … I try the short with a 30 point stop. Otherwise … show me the reversal and I try to play it … The one and only positive thing for the Dax … it looks like a done deal that it will tank later in the day …
Tags: carry trades, daily outlook
