Yesterday US President Trump reluctantly signed new sanctions against Russia claiming these had ‘clearly unconstitutional’ elements - yet were overwhelmingly approved by Congress. Hours later on his Facebook page Russian PM Dmitry Medvedev explained how he saw this new move. ‘First, any hope of improving our relations with the new US administration is over. Second, the US just declared a full-scale war on Russia. Third, the Trump administration demonstrated it is utterly powerless, and in the most humiliating manner transferred executive powers to Congress’.
Brazilian footballer Neymar was sold to Paris Saint-Germain for £198 million – paid for with Qatari money. The player will earn about £40 million per annum (basic salary plus perks), which compares ‘favourably’ to the average £4.7 million paid to FTSE 100 chief execs. This is a 17 per cent reduction from 2015 and takes the men’s ratio to their average employee down to 129:1. The six women on the list earn an average £2.6 million.
DAX 30
Banging about clearly under the 12350 level, an example of another market looking for direction. Just as a weak US dollar will help American exports so too a stronger euro will hamper German ones.
SHORT TERM TRADER: Small short at 12225; stop above 12355. Target 11550.
POSITION TAKER: Short at 12175; stop above 12400. Target 11500.
FTSE 100
Consolidating in a sort of triangle since mid-July, normally a consolidation pattern. Let’s see if we can maintain our little series of descending highs.
SHORT TERM TRADER: Short at 7394; stop above 7520. First target 7300.
POSITION TAKER: Square.
S&P 500
Front page news as the Dow Industrials hits a new record high at 22036 – the bulk of the gains over the last month accounted for by Apple and Boeing.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Moving in line with other currency majors as many are being forced to review the forecasts for the US dollar – having seen steady losses in the last weeks and significant ones so far this year.
SHORT TERM TRADER: Square.
POSITION TAKER: Small long at 1.3090; stop below 1.3080. Target 1.3400.
EURO/US DOLLAR
A bit of a spike high yesterday suggesting some stop-loss orders were triggered above 1.1850. This was the highest price since the 13th January 2015 – not that it matters technically – and the high on 3 January 2015 was 1.2090 which will be the next point to aim at.
SHORT TERM TRADER: Long at 1.1740; stop below 1.1600. Target 1.2150.
POSITION TAKER: Square.
GOLD
Retreating fractionally from this week’s high creating something that looks more like an interim top on the commodity channel indicator.
SHORT TERM TRADER: Tiny short at 1266; stop above 1280. Target 1220.
POSITION TAKER: Square.
