CNBC reports that this morning mainland China’s cyberspace administration is investigating internet giants Baidu, Sina Weibo and Tencent for cyber-security violations. An English translation of the notice states that the social media platforms of these three (Tieba, Weibo and WeChat) have been spreading ‘violence and terror, false rumours, obscene pornography and other content that endangers security, public safety and social order’.
Lots of July inflation due today which has kicked off with Germany’s 1.7 per cent Y/Y, and a similar number expected from the Spain and the US later today. Next up is France where it’s running at just 0.7 per cent Y/Y (on an EU harmonised basis) and late Italy where it grew at 1.2 per cent in June.
DAX 30
Closing with a flourish well below what had been horizontal support at 12085 thereby turning momentum clearly negative, as expected. A weekly close below the psychological 12000 level, for the first time since early March, should add considerably to bearish sentiment.
SHORT TERM TRADER: Small short at 12225; stop above 12355. Target 11550.
POSITION TAKER: Short at 12175; stop above 12415. Target 11500.
FTSE 100
Another index moving with a bang – even as sterling weakens further against the euro to £0.9075. Momentum keeps switching sides so we shall not give it too much credit. A close today below 7375 would create a decent sized bearish engulfing candle on the weekly chart.
SHORT TERM TRADER: Small short at 7509; stop above 7555. First target 7350 met so quickly that have decided to hang on until next week for a drop below 7300.
POSITION TAKER: Will go short on a close below 7375 today.
S&P 500
Houston, we have a problem. Undoing a month’s worth of work in one fell swoop so that the MACD is back close to this year’s most bearish readings. A weekly close below 2400 is needed to see this increase further.
SHORT TERM TRADER: Short at 2468; stop above 2485. First target at 2430 almost met already so shall run this position a little longer.
POSITION TAKER: Will sell only on a weekly close below 2400.
BRITISH POUND/US DOLLAR
Still trying to base rather unconvincingly around the 1.3000 area and the commodity channel index at the -100 level.
SHORT TERM TRADER: Square and looking for an interim base to form.
POSITION TAKER: Square.
EURO/US DOLLAR
Still holding up better than expected with a second consecutive little dragonfly doji. Ironically, considering what is happening in the region, the Japanese yen has reverted to safe haven status and is trading close to this year’s strongest levels against the US dollar.
SHORT TERM TRADER: Long at 1.1740; stop below 1.1700. Target 1.2150.
POSITION TAKER: Square.
GOLD
Rushing up to this year’s highest levels as nervous investors plump for something they still believe in.
SHORT TERM TRADER: Stopped out again and very cross with myself.
POSITION TAKER: Square.
