At yesterday’s ECB rate–setting meeting, where many analysts had expected Mario Draghi to say when he would end QE, the gentleman did nothing of the sort, saying only, ‘this autumn we will decide on the calibration of our monetary policy instruments beyond the end of the year’.
Close to Mexico’s southern border, with Guatemala, at almost midnight local time, an earthquake measuring 8.0 on the Richter scale hit; a tsunami warning has been issued. As if the Caribbean hasn’t got enough to deal with as the hurricanes pile up, Miami-Dade is evacuated and highways are
gridlocked.
DAX 30
Capped by horizontal resistance at 12335 as the 50-day moving average closes below the 200-day one for a second consecutive day. Germany’s July trade data out this morning showed the surplus shrinking to €19.5 billion, towards the lower end of the last 3 years.
SHORT TERM TRADER: Square.
POSITION TAKER: Short at 12175; stop above 12355. Target 11500.
FTSE 100
Stuck between the 50 and 200-day moving averages.
SHORT TERM TRADER: Square.
POSITION TAKER: Short at 7300; stop above 7460. Target roughly 7000.
S&P 500
Triangle consolidation this week as we try and steer a steady course.
SHORT TERM TRADER: Short at 2468; stop above 2480. Next target is pivotal support at 2400.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Closing just above and this morning hurtling through the badly drawn trend line from 2014’s high, this is a story of US dollar weakness, not sterling strength. Note that the Japanese yen is at its strongest against the greenback since mid-November.
SHORT TERM TRADER: Took profits on my long position.
POSITION TAKER: Will go long on a weekly close above 1.3100.
EURO/US DOLLAR
Yesterday’s strongest daily close this year has at last turned the MACD bullish.
SHORT TERM TRADER: Square.
POSITION TAKER: Will go long on a weekly close above 1.2000.
GOLD
US dollar weakness is sending precious metals higher.
SHORT TERM TRADER: Square.
POSITION TAKER: Will consider going long on a weekly close above 1340.
