Good Morning Traders

We arrive back to the markets this morning to see things shaping up as they have been for the last number of weeks. Yesterday we saw another strong performance in both European and US equity markets. We saw new highs marked for the SPX and the Dow however comments from Fed member Evans took the sting out of the rally as he indicated that we might see a slight tapering of QE towards the end of the year, and it it this QE news that has the ability to dictate market direction. All traders and investors will be looking towards Bernanke for a clear indication as to the future of the FED's level of intervention.

We will adopt the same trading principles that we have been implementing for the last few weeks, as this market wants to move higher. We expect to see the marker remain relatively quiet ahead of Bernanke tomorrow and we might see a few cautious traders take some money off the table in-case we see some indication that QE may be coming to an end expect to see a drastic move to the downside if this is the outcome. However I believe that the data is far from strong enough to tamper the current level and if the data continues to improve and the unemployment rate drop it may be a sign to ease the existing levels.

However that's tomorrow, as far as today is concerned, any dip is a genuine buying opportunity but I would be looking to close some positions ahead of the FED press conference tomorrow. Elsewhere in the markets the EURUSD pair continues to come under pressure as Dollar strength is dominating the core of the FX market. USDJPY trades at 132.250 handle off its high of 133.

Happy Trading
@lowkeycapital