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Death of diesel

Car sales to be banned
July 25, 2017

Today UK Environment Secretary Michael Gove will announce that sales of diesel powered vehicles will be banned from 2040.  This follows a similar announcement by President Macron of France, he too aiming at the same year.  Oil producer Norway is more ambitious targeting a phase out by 2025.  An emergency meeting of VW’s supervisory board has been called today to discuss how to tackle accusations that 5 German car makers have been operating a price rigging cartel for years.  Yesterday US auto-maker GM announced that Q2 2017 profits had slumped to $1.7 billion from $2.9 billion this time last year.

 

As traders come round to thinking about when the US will hit its debt ceiling (October or early November this year depending on how spending goes), this is beginning to have an effect of the Treasury Bill market where the yield spread of 6 month paper over one maturing in 3 months turned negative this week – for the first time since 2009.

DAX 30

Yesterday’s half-hearted attempt at a bounce has seen momentum turn more bearish.  Lots of European companies reporting results this week gives ample room for surprises.    

 

SHORT TERM TRADER:  Small short at 12225; stop above 12500.  Target 11550.

 

POSITION TAKER:  Square.

FTSE 100

Thrashing around between the trend line which is now acting as resistance and the pivotal 7400 area confusing the commodity channel index. 

 

SHORT TERM TRADER:   Short at 7394; stop above 7520.  First target 7300.

 

POSITION TAKER:  Square.

S&P 500

A fractionally higher new high has not altered the commodity channel index which looks set to turn down.

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Square.

BRITISH POUND/US DOLLAR

A shooting star candle yesterday with prices failing miserably to hold above horizontal resistance at 1.3030 saw bullish momentum dip a little.  A pity but have decided to give it a little more time.

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Small long at 1.3090; stop below 1.2900.  Target 1.3400.

EURO/US DOLLAR

A little shooting star at a new high for this year is rather worrying.  Bullish momentum has dipped in the process but we’ll give it another day or two to stabilise.

 

SHORT TERM TRADER:  Small long at 1.1525; stop below 1.1450.  Target 1.1700, maybe 1.2000.

 

POSITION TAKER:  Square.

GOLD

Retreating after a tiny doji so that the commodity channel index looks set to turn down.  We may have found yet another new interim high.

                            

SHORT TERM TRADER:  New small short at 1245; stop above 1260.  Target 1210.

 

POSITION TAKER:   Square.