Because President Sergio Mattarella didn’t like the coalition’s choice as finance minister, he replaced recently chosen Giuseppe Conte as PM with his choice, ex-IMF’s Carlo Cotarelli. Head of Five Star Luigi Di Maio said yesterday, ‘’let’s not give up now, we must not give in to the arrogance of the institutions which have decided to keep people making decisions for their own country’’, calling for peaceful protests across the country.
Over in Spain minority PM Mariano Rajoy faces a no confidence vote on Friday, something he survived a year ago, over the conviction last week of 29 people linked to his party over corruption, influence-peddling and falsifying accounts.
DAX 30
We have a bearish engulfing candle on the weekly chart, against Fibonacci 76.4 per cent retracement, following 8 consecutive weekly rallies. Though momentum is still bullish, this week’s dip below the 128000 (support which held for many weeks in Q4 2017) adds some downward pressure. Note the leap into German sovereign bonds and exodus from Italian bank shares.
SHORT TERM TRADER: Tiny short at 13145; stop above 13050. Target 12400.
POSITION TAKER: New short on Friday’s close at 12935; stop above 13210. Target 12000.
FTSE 100
FTSE index to be re-jigged as at tonight’s closing prices. Technically, last week’s record high smacks of a spike high/shooting star candle, following 8 consecutive weekly rallies, with the commodity channel index looking as though it’s about to turn down.
SHORT TERM TRADER: Tiny short at 7855; stop well above 7800. Target 7400.
POSITION TAKER: Small short at 7799; stop well above 7900. First target 7400.
S&P 500
Irrelevant little weekly candles and zero momentum. Let’s see if this market stirs following yesterday’s Memorial Day holiday.
SHORT TERM TRADER: Short at 2725; stop above 2755. Target 2625.
POSITION TAKER: Small short at 2720; stop above 2755. Target 2620.
BRITISH POUND/US DOLLAR
Slithering towards trend line support having given up almost half of last year’s gains.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
EURO/US DOLLAR
Like cable, slipping towards trend line support following 6 consecutive weekly declines.
SHORT TERM TRADER: Stopped out of my long position on Friday afternoon. Now square.
POSITION TAKER: Square.
GOLD
Consolidating under the horizontal level around 1310 and momentum is bearish.
SHORT TERM TRADER: Short at 1292; stop quite a bit above 1300. First target 1240.
POSITION TAKER: Square.
