This was a fairly slow weekend for exciting news. However, the major news sites are plagued with stories of the Sarkozy/Hollande French elections and possible run-off.
Here is a quick tidbit from Reuters on how SNB Jordan vows to hold the CHF peg.
Some of the big names reporting earnings this week are XRX, NFLX, STI and COP on Monday, AMGN, JNPR, BHI and WAT on Tuesday, XLNX, HOG, GD, BA, S and NOC on Wednesday, AMZN, TYC, BMY, XOM and PEP on Thursday, and MRK, PG, IP and F on Friday.
Monday we have Australian CPI, Tuesday Canada has Retail Sales and US New Home Sales and Consumer Confidence, Wednesday is the FOMC meeting with the Chairman giving his press conference, and then that evening is New Zealand’s rate decision as well, Thursday the US has pending home sales and weekly unemployment claims. Also late Thursday night is the BOJ rate decision with everyone looking for the possibility of more JPY weakness. Friday is advance GDP for the US.
Take a look of the AUD/JPY 4 hour which has a quadruple top and is about to break out higher. Keep in mind the AUD/JPY and the SPX have a very strong correlation.
Here is the 4 hour from the e-mini’s (ES_F) that show the same setup, which tells me the AUD/JPY could be the lead in this case this evening.
With HSBC China Manufacturing PMI in a couple hours, that could be catalyst that push the markets higher.
This is a daily chart of AMZN. I love stocks like this that have really been under-performing the market. Should the equity market turn lower in general, this stock should be on everyone’s short list. They report Thursday.
The daily chart of the EUR/USD will be facing all types of resistance from 1.3250-1.3300 this week on the two down sloping trend lines. So be careful getting too bullish prior to the breakout (if we get it).