Join our community of smart investors

Ten days and he’s fired

Scaramucci goes
August 1, 2017

Yesterday General John Kelly was sworn in as the US President’s Chief of Staff and Mr Trump’s communications director no longer has a role in his administration.  The revolving door at the White House is spinning so fast many are finding it hard to keep up with the name changes.  A Tweet was sent out by the President late last night saying ‘A great day at the White House!’  He also boasted about how well the US economy and markets were doing, adding ‘no WH chaos!’  For good measure the US Treasury’s Office of Foreign Assets Control yesterday personally sanctioned assets of Venezuelan President Maduro, adding him to their list of ‘specially designated nationals’.

Today the Reserve Bank of Australia kept its Cash Rate unchanged at a record low 1.5 per cent (where it has been since August 2016), warning that the stronger Aussie dollar would weigh on inflation and economic growth.

DAX 30

Momentum is more bearish than it has been all year as the Dax index move to close the price gap opened up on the 23rd April.    

 

SHORT TERM TRADER:  Small short at 12225; stop above 12355.  Target 11550.

 

POSITION TAKER:  Short at 12175; stop above 12400.  Target 11500.

FTSE 100

Still guttering around the 7400 area so that the MACD is too mixed to be of much use. 

 

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

 

POSITION TAKER:  Square.

S&P 500

record high.  The S&P 500 is only marginally off overbought levels.  Remember, all things being equal a weaker US dollar should increase the value of every US equity.

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Square.

BRITISH POUND/US DOLLAR

Rallying on generalised US dollar weakness.  Worth noting that today is a Swiss national holiday so keep an eye on the currency which saw a dramatic fall in value last week.

 

SHORT TERM TRADER:  Square.

 

POSITION TAKER:  Small long at 1.3090; stop below 1.3000.  Target 1.3400.

EURO/US DOLLAR

Up again in line with the pound, momentum at it most bullish this year.  Note that the Financial Times reports today that the weakness of the US currency has increased foreign appetite for US corporate bonds.

 

SHORT TERM TRADER:  Long at 1.1740; stop well below 1.1600.  Target 1.2150.

 

POSITION TAKER:  Square.

GOLD

Barely budging yesterday even as the euro trades at its strongest versus the US dollar since early January 2015.

                            

SHORT TERM TRADER:  Square.

 

POSITION TAKER:   Square.