Confederation of British Industry data yesterday showed that retailers had a terrible time in August, sales falling at their fastest in over a year with 44 per cent saying they had sold less against 34 per cent with increased turnover. This morning a YouGov survey found that UK household income shrank for a fifth consecutive month. Jumping onto the trend is Amazon which said yesterday that its dead with Wholefoods will complete on Monday and on the very same day it will slash prices on a host of everyday goods at the upmarket stores.
As we warned earlier this week yesterday a hurricane warning was issued for the Houston area which could make landfall by today. Hurricane Harvey might hit anywhere between Corpus Christ, Texas, and Lake Charles, Louisiana, a region dotted with Gulf Coast refineries.
DAX 30
Stalled again, this time with a spike high, ahead of trend line resistance which lies just below a descending 50-day moving average, again settling just below the 200-day one – all of which is happening under a Fibonacci 38 per cent retracement resistance and the horizontal level 12345.
SHORT TERM TRADER: Small short at 12225; stop above 12355. Target 11550.
POSITION TAKER: Short at 12175; stop above 12355. Target 11500.
FTSE 100
Rather perkier than we had expected settling above the 50-day moving average.
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
A small spike high yesterday at the area that capped in June with all eyes and ears on Jackson Hole, Wyoming.
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
A little dragonfly doji yesterday hints that yet again cable is attempting, rather feebly, to stabilise at current levels.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
EURO/US DOLLAR
Going nowhere, as are many markets, but holding at this year’s highest levels.
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 very narrow range under an established interim high.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
