Today the first of a planned three-month series of strikes start in France. Centred around railway monopoly SNCF, changes in job contracts, retirement age, university admissions among other elements will probably ensure that other unions will join in. Working three days, then striking for the next two, even university students are threatening to join in evoking the 1968 unrest.
In a report compiled by HMRC, figures show that in the 20 years to the tax year 2015/16 double (a total 4.87 million) the number of Britons paid the top two rates of tax, accounting for two thirds of income tax receipts; 362,000 paid the 45 per cent rate. The planned increase for the 40 per cent threshold to £45,000 will reduce these figures.
DAX 30
Not exactly an auspicious start to the year as we give up on the laboured gains of the last three years. Note that the monthly MACD has only just turned down and price action cannot be labelled a rout.
SHORT TERM TRADER: Short at 11800; stop above 12200. Target 11400.
POSITION TAKER: Short at 11800; stop above 12400. Target 9500.
FTSE 100
Grim start to the year with three consecutive bearish, biggish, candles – known as three black crows. Momentum turned clearly bearish in March and we are trading close to 2013’s high. Thank goodness for dividends.
SHORT TERM TRADER: Small short at 7055; stop above 7100; target 6700.
POSITION TAKER: Short at 6850 and at higher levels; stop above 7100. Target the 6675/6700 area.
S&P 500
From its most overbought ever the last two months have seen bullish momentum collapse since February’s hanging man candle. Bloomberg reports that trading yesterday in the US saw the worst start for any April since the Great Depression, led again by tech stocks – Intel this time too as rumours Apple will stop buying its chips.
SHORT TERM TRADER: Small short at 2675; stop above 2700. Target 2585.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Retreating almost half of the losses since 2014 and consolidating in a neat triangle with momentum clearly bullish. Just a matter of time before we rally to a new high for this year.
SHORT TERM TRADER: New long at 1.4075; stop well below 1.4000. Target 1.4275.
POSITION TAKER: Square.
EURO/US DOLLAR
You can see why we’ve stalled here, but with strong bullish momentum and an ever more erratic President Trump it’s just a matter of time before we break above secular trend line resistance.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Trapped in a tiny range this year with plenty of overhead resistance and precious little bullish pressure from the MACD.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
