NY- Neutral- The backdrop of a stronger dollar accross nearly all the majors sent NY tumbling on Friday as recent spec longs liquidated and origin joined in the selling. Of late, its seems every time the board makes a sustainable move upwards, it comes crashing back to reality, in effect, mirroring developments in the global macro recovery. While May is trapped in the 130-135 consolidation zone we choose to remain neutral; action is likely to remain muted until later in the week with US retail sales on Thursday and GDP/Univ. Michigan Sentiment indicator Friday.
Liffe- Sell (1)- Despite clawing back some recent losses last week, LDN was unable to make a sustainable break above 1280/1300. Friday saw the market capped due to a resurgent USD and lack of any really 'big' players going long has ensured gains have not been dramatic. Following the failure to breach 1280, we see the prospect of losses likely, ad watch for spec liquidation below 1250. 1200 remains the bear target to the downside and should provide some semblance of support. 1280/1300 remain the supply points.
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