SUMMARY

POSITIONS
+ SELL EuroStoxx

Key Trade: Sell Eurostoxx 50

5th September 2011 John Lewis Mark Sturdy
Disclaimer

Authorised and regulated by the FSA

Summary

SUMMARY
POSITIONS
+ SELL EuroStoxx

5th September Sell Dec 11 EuroStoxx 50 (1/2 pos) @ 2126. Stop @2229.Take Profit @ 1923

Disclaimer

(1) TECHNICAL: 5th September Sell Dec 11 EuroStoxx (1/2 pos) @ 2126. Stop @2229.Take Profit @ 1923
161.8%
DJ Euro Stoxx 50 Index EUREX Continuous 3200 3150 3100 3050 3000 2950 2900 2850 2800 2750 2700 2650 2600 2550 2500 2450 2400

WEEKLY continuation Chart The market has completed a large Double Top whose minimum target is about 1600.

SUMMARY
Positions POSITIONS
SELL EuroStoxx + SELL EuroStoxx

38.2% Low from weekly continuation char t 2333 AND COMPLETION LEVEL OF DOUBLE TOP

2350 2300 2250 2200 2150 2100 2050

Low 2070

2000 1950 1900 1850 1800

Low 1784

1750 1700 1650 1600

J J

S O N

D 2009

M A M

J A

S O

N D 2010

M A M

A S O

N D 2011

M A

M J

A S O

Daily Dec 11 Chart

DJ Euro Stoxx 50 Index EUREX Dec 11 2550 2500 2450 2400

Low from weekly continuation char t 2333 COMPLETION LEVEL OF DOUBLE TOP

38.2%

2350

2300

The short-term chart has completed a continuation triangle whose minimum target is 1900 or so. Stops above the close of yesterday 2207, say 2229.

2250

2200

2150

2100

Stop @ 127.59
2050 2000

Stop 126.87

1950

1900

200000 150000 100000 50000 0

Disclaimer

13

20

27

4 July

11

18

25

1 August

15

22

29

5 September

12

19

(2) FUNDAMENTAL 5th September Sell Dec 11 EuroStoxx (1/2 pos) @ 2126. Stop @2229.Take Profit @ 1923

The Euro zone Sovereign debt crisis remains unresolved and with a potential constitutional crisis building in Germany will it ever be? The German Chancellor has lost much of her own partys support for the bail-out measures and she has agreed to placing a huge question mark over the Euro zones ability to carry out the rescues it is committed to. Moreover, politicians are questioning whether the ECBs actions in buying beleaguered government debt are even legal under the terms of current governing treaties. Add to this a brewing Euro zone banking crisis and slowing growth and it is no wonder stocks are looking bearish. When you also consider the weakening US economy, we can only see stocks heading one way We recommend shorts.

SUMMARY
Positions POSITIONS
SELL EuroStoxx + SELL EuroStoxx

Disclaimer

SUMMARY
POSITIONS
+ SELL EuroStoxx

SEVEN DAYS AHEAD Authorised and Regulated by the FSA 124 REGENTS PARK ROAD LONDON NW18XL TEL +44 (0) 7849 922573 E-MAIL msturdy@sevendaysahead.com, pallwright@sevendaysahead.com WEB SITE SEVENDAYSAHEAD.COM The material and information set out in this research is not intended to be a quote of an offer to buy or sell any financial products. Any expression of opinion is based on sources believed to be reasonably reliable but is not guaranteed as to accuracy or completeness. The material and information herein is general and for informational purposes only. Although Seven Days Ahead endeavours to provide useful information they make no guarantee as to the accuracy or reliability of the research. The derivative market comprises volatility and considerable risks. To the maximum extent permitted by law no responsibility or liability can be accepted by Seven Days Ahead, any company or employee within its group for any action taken as a result of the information contained in this presentation. You are requested not to rely on any representation in this research and to seek specific advice from your accountant, legal adviser or financial services adviser when dealing with specific circumstances.

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