Smiles and thumbs-up all round. Now let’s see how long that lasts; hopefully longer than PetroChina which hit $1.7 trillion, only to lose $800 million in market value after the great financial crisis. Then there’s Saudi Aramco, admittedly state-owned up until now and currently worth $1.5 trillion.
By a unanimous vote yesterday the Bank of England did what derivatives had been flagging and raised Bank Rate by 25 basis points to 0.75 per cent. Reasons for the move included the tight labour market which is expected to fuel inflationary pressures and that Britain will get a decent Brexit trade deal. We’ll see.
DAX 30
Momentum inched into the red as July’s rally stalls.
SHORT TERM TRADER: Short at 12635; stop above 12930. Target 12200.
POSITION TAKER: Considering re-selling at tonight’s close.
FTSE 100
A rather ominous hanging man candle at the top of the gently sloping downward trend channel; momentum is edged bearish.
SHORT TERM TRADER: New short at 7610; stop above 7800. First target 7500.
POSITION TAKER: Small short at 7799; stop well above 7800. First target 7400, then 7100. Might add to this position on a close tonight below 7500.
S&P 500
Bit of a whoops moment yesterday as we slip below the little neckline only to recover later on and close above it. US July employment data this afternoon may prove decisive for this potential little interim top.
SHORT TERM TRADER: Short at 2795; stop above 2880. Target 2600.
POSITION TAKER: Short at 2805; stop above 2900. Target 2555.
BRITISH POUND/US DOLLAR
So much for interest rates affecting exchange rates.
SHORT TERM TRADER: Long at 1.3140; stop below 1.3000. Target 1.4000.
POSITION TAKER: Square.
EURO/US DOLLAR
Momentum’s more bearish than it has been in over a month.
SHORT TERM TRADER: Stopped out of my long position for a small loss on yesterday’s break below 1.1600.
POSITION TAKER: Square.
GOLD
A second even lower daily close this year.
SHORT TERM TRADER: Will sell again if today’s close is below 1200.
POSITION TAKER: Short at 1242; stop above 1250. Target 1140.
