Daily Analysis and Trade calls

  Markets are going to face news loaded week especially  Existing Home Sales, Durable Goods and GDP which is going direct markets. This three major economic news will show economy health as well particularly housing sector which is growing rapidly.

     Yen is again approaching important level 100 against dollar again a very crucial level for yen itself and global market if it breaks this level we might see next rally on stocks.From a technical perspective, the trend on the longer term time frames (daily/weekly) remains strong with further upside looking like a good possibility. The USD/JPY left a small gap around 99.50, surging again near the 100.00 key level. Sentiment continues to be bullish for the pair, and retracements are expected to remain limited and be taken as buying opportunities by investors. The level has been prove strong in the past, and a large number of stops then should gather above: if triggered, the 102.00 level is then exposed for the upcoming sessions. Although we are expecting dollar to be sideways as mix economic data is expected but one should be careful with gold price as it is approaching again 1425 which was supposed to be strong level it is breaking this level next is around 1500 though as everyone is talking about deflation as inflation is no more worry after latest data coming from across globe. If this week US economic data is weak than we should expect gold to 1530++.

    On the stocks front investor are keenly waiting for Apple earning which will be make or break  for it prices .The stock last week fell through $400 a share, down more than 44% from its all-time high of $705.07 in late September.

The iPhone maker is expected to report fiscal second-quarter earnings of $10.03 a share on revenue of $42.45 billion, according to analysts polled by FactSet. To underscore the importance of Apple, earnings for the tech sector are expected to fall 4% this season. They would grow 0.2% excluding Apple, according to Butters.

    But even more key in the coming week will be earnings from Dow component Caterpillar,he said. “They’ll serve as a litmus test particularly with their exposure to China,” Luschini said. In the past week, China’s economy grew by 7.7% in the first quarter, short of the 8% expected from economists. That data, combined with industrial output that showed a slowdown, sent commodities and stocks into a tailspin Monday.

   Our last friday's call to sell Nasdaq was bombed as we ignore google earnings but we are still optimistic on dow jones and buying gbp/Usd though Britain's rating was cut by Fitch.

Following are trade calls for today,

• Sell Usd/Jpy at 99.95 stop above 100.50 target 98.85
• Sell Crude Oil at 89.50 stop above 90.40 target 87.50/open

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