ETF UpdateThe main U.S. ETFs that track technology (XLK) (26.15), energy (XLE) (76.10), semi-conductors (SMH) (35.30), financials (XLF) (15.50), and emerging markets (EEM)(48.00), show little indication that momentum is building, and are back into the previous session ranges after getting caught in the Kentucky Derby-type finish to Wall Street trade on Tuesday. All ETF's will signal short at some stage today, and detail will be sent to clients. Now is not the time to be hanging on to long-equity sector ETF's.
Alternate 24-Hour TradeInvestors who do not want to wait for their regional cash market to open, or do not have 24-hour access to the market they have open positions in, are able to access the 24-hour currency market. There is potential to analyze and trade currencies in a high-volume market that is supported by the global inter-bank system. Investors can trade currencies in-line with a rising global market, or trade ahead of a falling cash market open. Being able to use currencies offers the opportunity to be in a trade before the regional market opens. Traders could trade the currency pair AUD/USD in line with the potential seen in global equity and commodity movement. Buying the US dollar and selling the Australian dollar is a simple process of placing a sell order on AUD/USD, and then closing that same position in a similar way that equity trades would be bought and sold. If global market trade favors the selling of S&P 500 below 1325 a potential trade signal will be issued on AUD/USD. Selling AUD and buying USD via this currency pair from 1.0670 draws in 1.0650 and 1.0580. The trade signal sent to clients earlier with a break of AUD/USD (1.0690) going lower from 1.0710 has hit its Target 1 areas, and is on its way to 1.0670.
S&P 500 Price ActionStrong buying activity was seen at 1330 on S&P 500 trade in April and May. The market has moved lower and broken this major swing point area, and will now be closely monitored. Market alerts and updates will be sent to subscribers when price action moves look to be sustainable. Main S&P500 support: 1295. Main S&P500 resistance: 1340. Daily trading range on S&P 500 is 16 points, which is above the historical norm and indicates that volatility is increasing, in low-volume markets.
ETF Price ActionThe SPY trade ran into a wall of resistance in April and May at 134.00, which will now be very difficult to break. The trade desk will pay close attention to price action as the week unfolds, and expects a lot of price gaps to form between each session open and close. Volatility will build if the pattern of Asian and European trade moving S&P 500 futures valuations overnight continues. Main SPY support: 131.00. Main SPY resistance: 134.00. TheLFB trade desk generates trade signals that highlight specific price points to trade from, and market alerts that highlight sentiment changes in global markets. TheLFB provides 24 hour market support for traders, investors, and institutions. Service offerings include analysis of three asset class areas:
- Foreign Exchange (Dollar Index, EUR, GBP, AUD, CHF, CAD, JPY)
- Equity indices and ETFs (SPY, DIA, GLD, SLV, USO)
- Commodities (Gold, Oil, and Silver)