Market Commentary
Markets finished last week on a somewhat cautious note following reports that Ukraine may have attacked and destroyed a part of a Russian military convoy late on Friday.
Bunds and Treasurys benefitted from risk aversion in the latter part of Friday’s session. Safe haven inflows supported a firm break in the Bund to new all-time highs, past the 150.00 handle.Equity indexes declined rapidly and with vigour, with the scale of declines in European equities exceeding that in the US. The markets have by now pared most of the reaction to Friday’s news as it transpired over the weekend that the report of the attack on a Russian convoy was either fabricated or intended to be misinforming.
The economic calendar for the day ahead does not bode for an eventful session.
Intraday Strategy: E-mini S&P
Taking into account the quiet market conditions, our strategy for the day ahead focuses on buying into a deep pullback to the pivot, targeting R1 and R2, contingent on momentum.
Intraday Strategy: DAX
Our approach for the Dax for the day ahead mimics out strategy for US equities. We are aiming to buy into a stabilising pullback to the pivot, targeting R1 and Friday’s high.
Intraday Strategy: EUR/USD
We are aiming to buy the EUR/USD on evidence of stabilization at S1, targeting the pivot and R1.
Technical Analysis: Nasdaq and DJIA
Nasdaq Sept futures are trading at new highs for the year this morning, just above the 4,000.00 handle. DJIA and S&P 500 slowly grinding higher amidst very light newsflow.
Technical Analysis: Bund and US 10-year T-note Futures
Bunds and US 10-year treasurys paring last Friday’s sharp gains.
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