Tuesday 25 October 2011

USDX + DAX +EURUSD

We are seeing an increasing convergence of asset pricing with a great correlation now developing between EURUSD & equity indices- for obvious reasons but also many other markets. I am also aware of a 'truth or fantasy' dilema as we currently have with global fundamentals being bearish or lukewarm at best(not withstanding US company earnings/reports all coming in this week- 40% OF ALL s&p 500 COMPANIES REPORT THIS WEEK) and yet equity markets are surging past my expectations and I am loathe to enter any long equity Indices position at these levels. The DAX ( Z11) approaches major resistance at 6160 and i will also watch to see how the USDX behaves at 76.00 and EURUSD at 1.4000-1.4020 where I see opposing/resistance from reaction lines. We remain flat on all markets except grains.





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