Breakfast Blog

Good Morning Traders, Top of the Risk Management Morning!
Its G7 summit time and the market was typically whippy with rumours and misquotations from politicians. During the European financial crisis in 2011 there was a summit nearly every month and this saw the same volatile price action, this combined with thin markets and its a recipe to get stopped out very quickly. The secret in these markets is too keep a cool head and not to let your emotions take over! A misquotation in regards to the strength of the Yen yesterday caused USD/JPY to lose a full point in about 45 seconds.
Yesterday saw all the European bourses make good gains, driving higher from lower peripheral yields and a general risk on vibe across all asset classes, the financials being the noteable out performer for a second day in a row.
Across the pond, the S&P 500 put in another huge close at 1519, Every dip on the contract is a great buy as it just keeps going higher. 1530 looks a good short term target and at this rate we could even make new all time highs before we get some bad news to lead to some kind of correction. Core retail sales are out today at 1 30 and a good figure here could spur the index higher again.
On the currency side the EUR/USD is up this morning and as i type is testing touted offers in the 1.3480 region. If it clears these look for a lot of sellers at the 1.35 handle. The month on Month Eurozone Industrial output is out at 10 a.m. and a good figure here may give the Euro the boost it needs to take out the 1.35 figure.
A good level to buy at for the S&P 500 is around the 1515 mark, this was important previous resistance and looks to be solid support now and a test on it yesterday just as the market opened yesterday was bought straight away.
Good luck in the Markets