For the second time in less than a month Japanese people in the North of the country woke to air raid sirens warning them to take cover, something that had not happened since World War II. Stepping off a plane from India PM Shinzo Abe said the act was ‘absolutely unacceptable’. South Korea President Moon Jae-in now believes that ‘dialogue is impossible in a situation like this’.
London Fashion Week starts today at The Store, 180 The Strand. A business worth £28 billion annually and employing 800,000 people, it’s worth a lot more than the car business and employs nearly as many as the National Health Service. UK trained designers from art and fashion schools are highly sought after around the world, regularly heading up the most prestigious houses internationally.
DAX 30
Very strange as we hover three, and possibly four, consecutive days on Fibonacci 61 per cent retracement resistance. Note that the commodity channel index has dipped in the process and would signal a bearish tone on dropping below 100.
SHORT TERM TRADER: Small short at 12490; stop above 12600. Target 12150.
POSITION TAKER: Square.
FTSE 100
Yesterday’s close below 7300 has obviously rattled a few cages, pushed lower by EURGBP which at £0.8880 has dropped 4 pence this month, the biggest gain for sterling against the euro since November last year. For the index a weekly close below 7300 would be the weakest since late May, adding weight to the idea that a gentle rounded top has been building for months.
SHORT TERM TRADER: Will re-sell on a weekly close below 7300.
POSITION TAKER: Short at 7300; stop above 7400. Target roughly 7000.
S&P 500
Bullish momentum has moderated considerably as we remain stuck at the top.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Just what the doctor ordered and a chart that’s a pleasure to work with. Yesterday’s big bodied candle, known as a Marabuzo, is a powerful signal of a market that’s on the move. The fact it’s around the 1.3300 area is important in that this was important long term resistance. Momentum is almost at its most bullish this year and a weekly close above 1.3400 would complete a massive rounded bottom that had been forming since June last year.
SHORT TERM TRADER: Target at 1.3400 met comfortably and will re-buy on a weekly close above here.
POSITION TAKER: Long at 1.3195; stop below 1.3150. First target at 1.3450 met this morning but I’m so keen on this chart I’ll hang on and see if we can get to 1.4000 – preferably pronto!
EURO/US DOLLAR
What seems to be happening is that the euro is consolidating in a rectangle between 1.1820 and 1.2070, which explains negligible bullish momentum.
SHORT TERM TRADER: Will probably go long tonight on a weekly close above 1.1900.
POSITION TAKER: Square.
GOLD
Bitcoin refugees might be tempted into here despite zero bullish momentum; let’s see if trend line support holds again today.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
