European Closing Thoughts: Intra-European Markets Switch
As expected in our plan the Euro Stoxx50 December futures (FESX_F) tested its support and for the 4th in more than 2 months was rejected.
“Longs” have been supported by a buoyant University of Michigan preliminary index of consumer sentiment for November, which increased to 84.9 from 82.6 the prior month. As we said in our Mid-Session Review economists surveyed by Bloomberg projected a reading of 82.9 for the gauge. The survey's gauge of consumers' views on current conditions rose to 91.3 in November from 88.1 in October, while the barometer of expectations increased to 80.8 from 79.
With less than one hour to go before the European cash closing bell the Stoxx 50 traded 0.09% lower to 2,476.87, the German Dax led losers down 0.73% to 7,152.56. In Southern Europe the Italian Ftsemib fell 0.23% to 15,158.75 while the Spanish Ibex rose 0.03% to 7,626.60.
The question now is: Are we assisting to an intra-European markets' switch?
The common currency regained the 1.2700$ mark trading 0.27% lower versus the dollar to 1.2718$. The Michigan sentiment together with a weakening dollar sent the Crude futures off from daily lows to 85.075$ a barrel while the Gold retraced a bit to 1733.3$ an ounce or 0.43% higher on the day.
European markets found support in US macro reading up to now, but with the Greek budget vote on Sunday, I'm not sure i would be comfortable with a long position in place. This week , the market remembered us the importance to follow our plan religiously and we were able to show to you the way we plan, we put in place and we close our trade.
It has been a long week, since we launched our Trader Development Programme we received a lot of interest from traders who want to be part of our company and we are really pleased because this is the best recognition we could have.
Thank you very much to all of you, have a great weekend.
Originally posted at www.77sigmatrading.com
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