In a lengthy outline of second quarter earnings yesterday, Facebook shares lost up to 24 per cent of face value, their biggest ever one-day fall. Revenue and user growth missed expectations, but it was the gloomy outlook caused by privacy issues that did the trick. The move helped cause the NASDAQ’s 0.85 per cent drop yesterday.
Second quarter profits at Royal Dutch Shell were up 30 per cent and the company announced a share buyback programme worth $25 billion.
DAX 30
A doji yesterday denotes indecision. Much has been made of the fact that at yesterday’s White House meeting President Trump and the EU’s Junker agreed to work towards zero tariffs. We’ll see.
SHORT TERM TRADER: Short at 12545; stop above 12800. First target 12200, then 12000.
POSITION TAKER: Square.
FTSE 100
Back inside the dreary trend channel that’s held for nigh on 3 months.
SHORT TERM TRADER: Square.
POSITION TAKER: Small short at 7799; stop well above 7800. First target 7400, then 7100.
S&P 500
Inching up again and back matching the very long term trend angle.
SHORT TERM TRADER: Tiny short at 2787; stop above 2880. Target 2600.
POSITION TAKER: Short at 2805; stop above 2900. Target 2555.
BRITISH POUND/US DOLLAR
Trying, but so many obstacles in the way.
SHORT TERM TRADER: Long at 1.3140; stop below 1.3000. Target 1.4000.
POSITION TAKER: Will buy on a daily close above the trend line.
EURO/US DOLLAR
The ECB meets today exactly six years to the day when governor Mario Draghi was forced to say he’d ‘do whatever it takes’ to sort out the euro.
SHORT TERM TRADER: Long at 1.1655; stop below 1.1600. First target 1.1850.
POSITION TAKER: Will buy on a daily close above the trend line as the yen is also appreciating gently.
GOLD
Holding at the bottom of this year’s range, like other precious metals. This week and this month’s closing levels could be very interesting and if so, I will be writing about these in next week’s column.
SHORT TERM TRADER: Square.
POSITION TAKER: Short at 1242; stop above 1250. Target 1140.
