At 11:30 pm last night Brexit secretary David Davis handed in his letter of resignation from Theresa May’s cabinet, effective immediately; he is joined by Steve Baker, a minister in the same department. His letter is forthright, saying, ‘’the Cabinet decision on Friday crystallised this problem. In my view the inevitable consequence of the proposed policies will be to make the supposed control of Parliament illusory rather than real…the ‘common rule book’ policy hands control of large swathes of our economy to the EU and is certainly not returning control of our laws in any real sense’’.
Torrential rain, flooding and landslides have killed at least 100 people in Western Japan and many are missing; two million have been evacuated from their homes. Today many have no electricity and no running water, and temperatures are expected to reach 30C. Automaker Mazda has closed its head office in Hiroshima and suspended operations at several plants.
DAX 30
The MACD turned bullish on Friday’s close as the index hovers close to the mid-point of the last three months.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
FTSE 100
Another index where the MACD is threatening to turn bullish. Two years of EU negotiations and now the Brexit minister resigns.
SHORT TERM TRADER: Short at a couple of levels; stop above well 7710. Target 7400.
POSITION TAKER: Small short at 7799; stop well above 7800. First target 7400, then 7100.
S&P 500
Pushing up towards June’s high and the MACD also looking to turn bullish today. Wednesday NATO leaders meet in Brussels for their annual meeting, Friday President Trump visits the UK, ahead of the Trump-Putin meeting in Helsinki next Monday.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Fabulously sanguine considering the Tory party fiasco.
SHORT TERM TRADER: Small position at 1.3230; stop below 1.3070. Target 1.3400, maybe 1.3550.
POSITION TAKER: Square.
EURO/US DOLLAR
Bullish momentum has been maintained as we edge up towards the 1.1800 level where a close above here completes a triple basing pattern.
SHORT TERM TRADER: Long at 1.1655; stop below 1.1500. First target 1.1850.
POSITION TAKER: Square.
GOLD
Bearish momentum has almost disappeared following last week’s corrective little bounce.
SHORT TERM TRADER: Still looking to re-sell close to 1280.
POSITION TAKER: Square.
