Technical Research - Euro Stoxx Index (3,091)
Quick Overview: The Index did make a new cycle high this morning but since then has moved into negative territory. Assuming we close below 3,107 we will get a false break above a cycle high which is a negative development in our view. Even though the day isn't over yet we feel that the risk/reward is attractive. Short Term Strategy: Short from market price, target 2,990 and place a stop on a daily close above 3,135. Good Luck! Support: 3,075, 3,034, 2,990 & 2,919 Resistances: 3,107-3,127 [cid:image001.jpg@01CF07D1.6B8FA8D0]
Summary of Trading Positions - European Indices: Position
Entry Date
Index
Entry Level
Target
S/L Level
Exit Date
Exit Level
P/L
Seller
5/12/2013
SX5E Index
2991
2872
2940
17/12/2013
2,969
0.74%
Seller
10/12/2013
DAX Index
9151
8770
9226
19/12/2013
9,335
-2.01%
Seller
18/12/2013
SX5E Index
2972
2872
3015
19/12/2013
3,031
-1.99%
Seller
2/1/2013
CAC Index
4263
4143
4313
0.13%
Seller
2/1/2014
SX5E Index
3091
2990
3135
0.00%
Total Average Return
-0.61%
Summary of Trading Positions - European Equities: Position
Entry Date
Index
Entry Level
Target
S/L Level
Exit Date
Exit Level
P/L
Buyer
27/11/2013
BCP PL Equity
0.12
0.18
0.11
27/12/2013
0.18
50.00%
Seller
17/12/2013
VIV FP Equity
18.63
16.40
19.36
-1.13%
Buyer
18/12/2013
EOAN GY Equity
13.00
14.14
12.80
1.73%
Seller
18/12/2013
GLE FP Equity
39.78
36.20
41.13
24/12/2013
41.5
-4.32%
Buyer
18/12/2013
HEN3 GY Equity
80.76
83.92
80.50
27/12/2013
83.92
3.91%
Buyer
17/12/2013
BARC LN Equity
254
269
247
27/12/2013
269
5.91%
Total Average Return
9.35%
Summary of Trading Positions - US Indices: Position
Entry Date
Index
Entry Level
Target
S/L Level
Exit Date
Exit Level
P/L
Seller
5/12/2013
SPX Index
1793
1746
1814
18/12/2013
1,810
-0.95%
Total Average Return
-0.95%
Select Brazil related names showing weakness, attributed to weaker real as central bank pulls back on stimulus: GFA -8.6%, OIBR -4.4%, SBS -4.1%, VIV -4%, BBD -3.6%, PBR -2.8%, EWZ -2.7%, ERJ -2.6%, VALE -2.4%.
Select EU Banks stocks trading lower: DB -2.7%, SAN -2.5%, UBS -1.3%, LYG -1.3%, HSBC -0.9%.
Other news: GYRO -8.7% (trading ex-dividend as of Dec 31), DRYS -7.4% (intends to resume sales under its previously announced $200 million program of at the market issuances of its common shares), TKC -5.7% (may face TRY527.7 mln tax fine, according to reports), UNXL -5.1% (COO resigned effective December 31, 2013), CBMX -1.3% (files to sell 81,910 shares by the selling stockholders in S-3 filing), NOK -0.7% (HTC plans to appeal NOK patent ruling, according to reports).
Analyst comments: ADI -2.8% (downgraded to Sell from Neutral at Goldman and downgraded to Market Perform from Outperform at Wells Fargo), AMRS -2.5% (downgraded to Underperform from Market Perform at Cowen), NXPI -2% (downgraded to Neutral from Buy at Goldman), ONNN -1.8% (downgraded to Neutral from Buy at Goldman), ANF -1.6% (downgraded to Hold from Buy at Jefferies), ARO -1.4% (downgraded to Hold from Buy at Jefferies), AAPL -1% (downgraded to Market Perform from Outperform at Wells Fargo), ALTR -1% (downgraded to Neutral from Buy at Goldman).
Brazil Real Falls to Four-Month Low as Intervention Scaled BackBrazil’s real dropped to a level weaker than 2.4 per dollar for the first time in four months as the central bank began scaled-back support for the currency.The real depreciated 1.9 percent to 2.4074 per U.S. dollar at 10:11 a.m. in Sao Paulo, the biggest decline among 24 emerging-market currencies tracked by Bloomberg. Swap rates maturing in January 2016 rose nine basis points, or 0.09 percentage point, to 11.71 percent.Brazil sold $199 million of currency swaps today under a program announced Dec. 18 to auction $200 million each trading day until at least June 30. The central bank offered $500 million four days a week in 2013.“The central bank’s intervention is now lighter and should have less of an impact on the market,” Marcelo Schmitt, fixed-income director at Sulamerica Investimentos in Sao Paulo, said in a phone interview.