The Financial Times reports this morning that President Mauricio Macri, in a televised address to the nation yesterday, said he had asked for financial assistance from the IMF, ‘to avoid a crisis like the ones we have faced before…[it] will allow us to strengthen our programme of growth and development’. He is rumoured to be asking for US $30 billion. From previous experience, most Argentines have an extremely negative view of this lender.
City AM reports that the hedge fund Caius has reported Italian bank UniCredit to the European Banking Authority for misclassifying €2.98 billion as ‘common equity tier 1 (CET1) capital. They claim it is in fact a complex convertible bond which cannot be used as such, and therefore the bank is ‘grossly undercapitalised’. On a smaller scale TSB owner Sabadell has been fined €1.6 million by the ECB for buying back capital without permission. Between 1 January 2014 and 7 November 2017, the bank repurchased its CET1 instruments without prior permission and ‘constitutes a continuous breach of own funds requirements’, said the ECB. Sabadell has appealed the decision.
DAX 30
Overbought after retracing just over 61 per cent of this year’s initial decline. The rally since early April looks stretched.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
Another index that looks stretched after an even longer rally, overbought at the Fibonacci 76.4 per cent retracement level.
SHORT TERM TRADER: Tiny short at 7580; stop above 7700. Target 7100.
POSITION TAKER: Square.
S&P 500
Hovering in the bottom half of this year’s range. Yesterday President Trump pulled out of the Iran nuclear deal while trying to come to a de-nuclearization deal with North Korea.
SHORT TERM TRADER: Small short at 2689; stop above 2725. Target 2580.
POSITION TAKER: Short at 2673; stop above 2725. First target 2560.
BRITISH POUND/US DOLLAR
More oversold than it has been since October 2016 as it tries to stem the tide of US dollar strength that’s gripped the world over the last 3 weeks.
SHORT TERM TRADER: Square.
POSITION TAKER: Small long at 1.3565; stop below 1.3400. Target 1.4300.
EURO/US DOLLAR
The slide continues putting the euro at its most oversold since November 2016.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Getting a bit messy as prices struggle at the 1310 level.
SHORT TERM TRADER: Tiny long at 1307; stop quite a bit below 1300. Target 1330.
POSITION TAKER: Square.
Nicole Elliott is a long-standing Member of the Society of Technical Analysts and has taken over the IC’s trading coverage. She is regularly interviewed and quoted by the financial media, is a conference speaker, and author of several books on charting.
