Delivering the Michel Camdessus speech at the IMF in Washington yesterday Bank of England Governor had this and other rather downbeat things to say about Britain and Brexit. This is not the first time he’s done this adding, it’s ‘an example of de-globalisation, not globalisation’ which will, in the short term at least, lower UK productivity and raise inflation; he repeated his pledge that a rise in interest rates is a possibility. The speed at which new trade deals can be done is of great importance.
The Knight Frank Luxury Investment Index ranks the best performing 10 sectors in this exclusive group. Classic cars, which have outclassed the others for several years, have dropped to 6th place having risen by just 2 per cent over the year to June. Leading the pack were fine wines, up 25 per cent, followed by art with 7 per cent growth and then jewellery, coins and watches which all rose by 4 per cent. Over the last decade the leader by a long shot have been pearls, up 282 per cent.
DAX 30
A little shooting star candle yesterday and a commodity channel index looking set to turn down is not entirely surprising seeing as Germany goes to the polls on Sunday.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
Holding above the horizontal level at 7200 and the trend line, with the MACD decidedly bearish. This might increase if the index holds below the 7300 area this week.
SHORT TERM TRADER: Short at 7220; stop above 7335. Target 7100.
POSITION TAKER: Short at 7300; stop above 7375. Target roughly 7000.
S&P 500
Holding above the psychological 2500 level yesterday and almost overbought on the daily chart as well. Note that the iconic Toys R Us chain, acquired by KKR, Bain and Vornado for $6.6 billion in 2005, has filed for chapter 11 bankruptcy protection. Plans for their 1600 worldwide stores ahead of the peak Christmas sales have not been announced.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Overbought and pausing for breath, consolidating under Friday’s high, as some analysts admit defeat and do a 180 degree turn on their sterling forecasts.
SHORT TERM TRADER: Small long at 1.3585; stop below 1.3375. Target 1.3800 and probably 1.4000.
POSITION TAKER: Long at 1.3195; stop below 1.3225. Decided to hang on and see if we can get to 1.4000 – preferably pronto!
EURO/US DOLLAR
Holding up better than expected keeping momentum bullish – though only just so.
SHORT TERM TRADER: Small long at 1.1945; stop below 1.1800. Target 1.2145
POSITION TAKER: Square.
GOLD
Breaking below immediate trend line support and the daily commodity channel index has been barrelling down since the end of August. Reminds me why I’m finding precious metals so difficult this year.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
