Reuters reports that due to ‘widespread and critical deficiencies’ in the bank’s capital planning controls the German bank’s US subsidiary has failed the second leg of its annual test for resilience in case of financial pressures. The decision was unanimous, but they are not alone. The Fed’s board also placed conditions on Goldman Sachs Group, Morgan Stanley and State Street Corp, the first two because of their capital base and the latter which must improve counterparty risk.
Yet again the 28 EU leaders at their summit meeting managed to discuss the migration issue for the best part of 10 hours, only cobbling some sort of statement together at dawn this morning. They also agreed to extend Russian economic sanctions, a formal decision due shortly; this ahead of a Putin-Trump summit in Helsinki on July 16. Today the remaining 27 (Theresa May has returned to the UK) will discuss Brexit where Dutch PM Rutte said, ‘’I believe the first, second and third priority is to solve the issue of the Irish border’’.
DAX 30
Though momentum is at its most bearish since February this index is trying to hold above Fibonacci 76.4 per cent retracement of April-May’s rally. The weekly chart is inconclusive at the moment. Only a Friday close clearly below 11300 will tip the scales.
SHORT TERM TRADER: Took nice profits at 12200 and now wondering where to re-sell.
POSITION TAKER: Short at 12550; stop well above 12600. Target 11900.
FTSE 100
Price action quite different from many indices as this one manages to hold closer to the record high than others; the MACD though remains doggedly bearish.
SHORT TERM TRADER: Short at a couple of levels; stop above 7800. Target 7400.
POSITION TAKER: Small short at 7799; stop well above 7800. First target 7400, then 7100.
S&P 500
Holding up a lot better than the Dow Transports with the Nasdaq and Russel lagging. S&P 500 holding this week against Fibonacci 38 per cent retracement support, though a close below here might add some bearish pressure.
SHORT TERM TRADER: Took profits this morning at 2725 having failed to make my first target at 2680.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Still oversold as we dip a little further.
SHORT TERM TRADER: Stopped out of my little long with a small loss.
POSITION TAKER: Square.
EURO/US DOLLAR
Holding up a little better than cable as the commodity channel index turns up – a bit.
SHORT TERM TRADER: Long at 1.1655; stop below 1.1500. First target 1.1850.
POSITION TAKER: Square.
GOLD
Yesterday bearish momentum hit it highest reading this year as we dip to the lowest price since December. This year’s drop has come in two equal parts, separated by sideways consolidation in May and the first half of June. We could be in for another bout of consolidation prior to a third decline.
SHORT TERM TRADER: Might re-sell on a close below 1240 today.
POSITION TAKER: Took very nice profits at target 1250 – at last!
Nicole Elliott is a long-standing member and Fellow 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.
