Having recently taken over from Rex Tillerson, US secretary of state Mike Pompeo delivered his first major foreign policy speech, lashing into Iran. Threatening ‘the strongest sanctions in history’ he said the Middle Eastern nation would be ‘battling to keep its economy alive’. He then went on to list 12 things the Middle Eastern nation must do and mentioned that European firms working with Iran will be ‘held to account’. Iranian President Hassan Rohani responded saying, ‘the world does not accept that the United States decides for the world. Countries have their independence’.
Business media is reporting that ex-President Obama and his wife Michelle have signed a multi-year contract with Netflix to provide content, including films, documentaries, mini-series and features. Their aim is ‘’to promote empathy and understanding between peoples, and help them share their stories with the entire world’’.
DAX 30
Still overbought as we hover at the Fibonacci 76.4 per cent retracement of this year’s decline.
SHORT TERM TRADER: Looking for more bearish signals before trying a little short.
POSITION TAKER: Square.
FTSE 100
A new record closing high at 7859 and too horribly overbought to be true. Note that this morning no less than 4 blokes from the Bank of England will be speaking.
SHORT TERM TRADER: Square.
POSITION TAKER: Stopped out of my short for a small loss.
S&P 500
Another index where the commodity channel index is close to sending out a bearish signal.
SHORT TERM TRADER: Short at 2725; stop above 2755. Target 2625.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Many commentators blaming cable for FTSE’s new highs. We continue to watch for signs of basing around current levels. Note that the interbank spot rate did not trade below 1.3400, a level some analysts are giving heightened importance to.
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
Here too we are looking for an interim low to form soon, stemming the sudden decline of the last month. The euro is horribly oversold and yesterday’s hammer candle is the first sign that it’s trying to base.
SHORT TERM TRADER: New long at 1.1795; stop well below 1.1700. Target 1.2150.
POSITION TAKER: Square.
GOLD
Like the euro, this one also formed a hammer yesterday suggesting we might now consolidate for the rest of this week, hopefully below 1310.
SHORT TERM TRADER: Short at 1292; stop quite a bit above 1300. First target 1240.
POSITION TAKER: Square.
