The average price of a newly built US home in July was $313,700, up 6 per cent annualised, more expensive than they have ever been and at a record spread over a similar existing home (35-40 per cent). Unsurprisingly the volume of new homes sold last month dropped by 9.4 per cent as compared to June and the supply of new build inventory increased to the equivalent of 5.8 months’ worth of sales. Annualised a total of 571,000 new homes were sold, well below the 25-year mean of 727,000.
City AM reports that over this calendar year Britain is set to lose a record number of bank branches – 762 versus 583 in 2016. Estimates suggest that we will be left with 8000 branches instead of the 18000 we had in 1989.
DAX 30
Retreating from trend line resistance which lies just below a descending 50-day moving average, settling just below the 200-day one. Looking increasingly like these two will cross to bearish with a death cross any day now.
SHORT TERM TRADER: Small short at 12225; stop above 12355. Target 11550.
POSITION TAKER: Short at 12175; stop above 12355. Target 11500.
FTSE 100
Trapped exactly between the descending 50-day moving average – which lies uncomfortably close to the 200-day one.
SHORT TERM TRADER: Square but will sell on a daily close below 7300.
POSITION TAKER: Short at 7300; stop above 7460. Target roughly 7000.
S&P 500
Retreating ahead of trend line resistance keeping the MACD clearly bearish. Central bankers and all too many in the media descend on Jackson Hole, Wyoming today and tomorrow.
SHORT TERM TRADER: Short at 2468; stop above 2475. Next target is pivotal support at 2400.
POSITION TAKER: Will sell on a weekly close below 2400.
BRITISH POUND/US DOLLAR
Sterling sliding a little further, back to where it was late June so that one now needs £0.9235 to buy a euro (in the spot market).
SHORT TERM TRADER: Stopped out of my little long position.
POSITION TAKER: Square.
EURO/US DOLLAR
Blink and you’ll miss it but momentum is just bullish.
SHORT TERM TRADER: Small long at 1.1745; stop below 1.1600. First target 1.1890 but in truth looking for a burst to a new high for this year.
POSITION TAKER: Square.
GOLD
Holding in a tight range under an established interim high so far this year, almost looking poised to spring suddenly.
SHORT TERM TRADER: Tempted to try another short but reluctant as we could get another sudden spike higher.
POSITION TAKER: Square.
