Market: Eurex EURO STOXX 50 Index Futures, $FESX_F
Buy/Sell?: We keep our short bias due to cross assets divergence in Europe, ie, Equities/Currencies, and in US Oil/Equities. Sell below 2530.
Line of Least Resistance: Upward sloping
Trend/Fade: Fade, subject to confirmation in the Eur/$
Reason for trade: After a 40-point run the shorts stance was kept in place. Yesterday’s bounce closed the trade but the underlying reasons to fade the up-move are still in place, and the divergence between the Eur/$ and the $FESF_F is supporting the idea that the picture is incomplete, which is the reason we are searching for market confirmations. The confirmation of the move will come from the Common currency breaking the 1.29$ mark.
Reason for trade: Our long trade continues to push higher and offset our stop on the AUD/USD. Take profit at T1 in place with stops moved to lock in profits.