Profits at ‘sweary’ O’Leary’s Ryanair were up by 10 per cent last year to a record €1.45 billion. This despite 20,000 flight cancellations because of a pilots’ strike at Europe’s largest low-cost carrier. Describing them as ‘guests’ rather than passengers, the average ratio of bums on seats was a staggering 95 per cent. Despite all of the above they expect a dip in profits this coming year, and an increase in passenger numbers, because staff costs will rise by 9 per cent.
A survey by the UK’s National Landlords Association said that one fifth of buy-to-let investors were planning to sell a property in the coming year. Almost half of these were flats aimed at the first-time buyer segment. While the prospect of 380,000 dwellings coming up for sale might be music to some ears, they pointed out that it would also mean a big reduction in available private rentals.
DAX 30
The Dax has today retraced a Fibonacci 76.4 per cent of this year’s decline and once again the commodity channel index is flashing a warning that the rally might be about to end. Also note that it has rallied for 8 consecutive weeks: The Rule of 8 (to 10).
SHORT TERM TRADER: So tempted to try a little short.
POSITION TAKER: Square.
FTSE 100
A new record high as the FTSE 100 posts eight consecutive solidly bullish consecutive candles. Careful as the commodity channel index is flashing a warning too.
SHORT TERM TRADER: Stopped out of my short this morning and rather upset.
POSITION TAKER: Short at 7700; stop well above 7800. Target 7000.
S&P 500
The MACD is still bearish as President Trump’s unpredictable comments and policy turns make investing an even harder job than it always is.
SHORT TERM TRADER: Short at 2725; stop above 2755. Target 2625.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
The commodity channel index is in buy territory for the first time since March last year. We continue to watch for signs of basing around current levels.
SHORT TERM TRADER: Long at 1.3545; stop below 1.3400. Target 1.4100.
POSITION TAKER: Small long at 1.3565; stop below 1.3400. Target 1.4300.
EURO/US DOLLAR
The euro is almost oversold having retraced a Fibonacci 38 per cent of last year’s rally. It will remain vulnerable as Italy tries to cobble together an unconventional government, the 66th since WWII, where apparently, no one is keen to be PM. As for their policies, they could be anything or nothing as they have such a slim majority.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Completing a complex topping pattern on Friday’s close and though momentum is only marginally bearish, resistance at the 1350/1375 area is stronger than current support.
SHORT TERM TRADER: New short at 1292; stop quite a bit above 1300. First target 1240.
POSITION TAKER: Square.
