Research firm Rhodium Group estimates that in the first five months of this year Chinese acquisitions and investments into America amounted to just $1.8 billion, off 92 per cent since this time last year, CNBC reports. If one also includes divestments a net $7.8 billion has in fact been withdrawn. This follows a significant drop in the second half of 2017 from a peak inflow of over $25 billion in the second half of 2016.
Bloomberg reports that traders at Deutsche Bank’s US unit suffered a one-day Q1 2018 loss that was 12 times bigger than the maximum amount internal risk officers use for regulatory purposes. According to the bank, this was offset by trading gains at its UK arm; worryingly, the issue wasn’t mentioned in its earnings report. One has to question how much of a handle the regulators have on what is really going on in the sector. For comparison, the next biggest trading loss relative to VaR (value-at-risk) was at BNP Paribas at 1.66 times and then HSBC at 1.08.
DAX 30
Flat-footed yesterday with a tiny spinning top type doji yesterday – and the same sort of thing so far today. Momentum should turn more bearish on a weekly close clearly below 12600.
SHORT TERM TRADER: Short at 12955; stop well above 13200. Target 12200.
POSITION TAKER: Will re-sell if Friday’s close is clearly below 12600.
FTSE 100
Obviously looking for direction with a downside test and hanging man Tuesday followed by an upside probe and shooting star yesterday.
SHORT TERM TRADER: Tiny short at 7855; stop above 7800. Target 7400.
POSITION TAKER: Small short at 7799; stop well above 7800. First target 7400, then 7100.
S&P 500
Recovering all of this week’s losses in a rather surprising sign of resilience.
SHORT TERM TRADER: Short at 2735; stop above 2800. First target 2680.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Not even a whisper of a lift even with Theresa May’s better day in parliament yesterday.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
EURO/US DOLLAR
Another flat-footed little chart as prices cling to the recent lows without managing any sort of lift whatsoever.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Having met the measured target from the little triangle at $1267, prices have also dipped below long term trend line support at 1270.
SHORT TERM TRADER: Pocketed a nice profit this morning – and about time too!
POSITION TAKER: Short at 1298; stop above 1285. Target 1250.
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.
