I’m sure this is all part of the government’s plan, and that it’s the right thing to do, but ahead of further tariffs the US is planning, the Chinese economy slowed. Fixed asset investment grew at 5.5 per cent caused by a local government crackdown on lending; new yuan denominated loans dropped to 1,450 billion. Industrial production remained steady at 6 per cent, as it was in June, and retail sales dipped to 8.8 per cent from 9 per cent.
Yesterday the Ankara Capital Markets Board warned against ‘misleading and false stories that could impact investor decisions’ which might result in a fine or 2-5 years’ imprisonment. The Interior Ministry says it will take legal action against hundreds of social media accounts causing the lira’s collapse, something President Erdogan called ‘’economic terror’’.
DAX 30
A tiny little hammer yesterday suggests we will try and hold above Fibonacci 61 per cent retracement support for another day or three.
SHORT TERM TRADER: Short at 12635; stop above 12930. Target 12200.
POSITION TAKER: Square.
FTSE 100
A tiny dragonfly doji yesterday hasn’t prevented inconclusive momentum from dipping into bearish territory.
SHORT TERM TRADER: Short at 7610; stop above 7800. First target 7500.
POSITION TAKER: Small short at 7799; stop well above 7800. First target 7400, then 7100.
S&P 500
An unusual little doji yesterday, a perfect spinning top (child’s toy), has not prevented the MACD from turning down.
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
Fairly well-behaved, though still very oversold, considering the number of headless chickens in the FX market currently and the relentless slew of ‘no deal Brexit’ threats.
SHORT TERM TRADER: Might try another little long.
POSITION TAKER: Square.
EURO/US DOLLAR
Another one that’s oversold but might be forming an interim low with yesterday’s little doji. It might also be one of the few alternatives to the US dollar currently.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
The mighty US dollar is being blamed for yesterday’s tumble through $1200 per ounce, a watershed level. The fact it did this yesterday with a decent-sized Marabuzo candle (big body) suggests volume was good and investors have decided to cut and run. Let’s see where the next lot will capitulate.
SHORT TERM TRADER: New short at 1194; stop well above 1220. Target 1160.
POSITION TAKER: Short at 1242; stop above 1235. Target 1140.
