Day 7
Situation:
U.S. Markets: Lost more than 1.5% till the closing bell … then up … on good HWP figures, an Asian turnaround and short covering ahead of the FED minutes and forecasts.
Asian Markets: turned around losses of up to 3% on shortcovering ahead of the FED
Commodities/Currencies : Yen turns around to weaken a bit …
Events: US … FED minutes and forecasts, Housing starts
Europe … After Dax again underperforming the Eurostoxx, let’s see whether we see as well a bit shortcovering here … UBS said yesterday, they see US Markets squeeze by 10% (on Friday’s close, so 12% 
) into the year end … powered by a 50 bps cut by the FED in December. This guy plays HERO or ZERO …
Ideas/Strategy: … Trying not to get hurt by possible shortcovering as we seemingly completed a move yesterday, it might be the time to play the long side on pull backs … supports: 7525 … 7498/7503 … below that … 7370 still lurking … resists: 7573/80 … 7605 … 7627 … 7650 … 7690 … 7720 … 7750
Tags: daily outlook, UBS
