Data for the year to June 2017 from the Office for National Statistics show that London house prices across all boroughs fell by 0.7 per cent, the steepest drop since the 3.2 per cent of September 2009. As is so often the case, the higher they climb, the harder they fall, and Kensington & Chelsea saw its biggest drop on record, 10.5 per cent. Needless to say, this effect has seeped slowly across the UK where house prices saw the slowest growth in 5 years. The average property now costs £228,000 (London £447,000); hardly affordable.
Yesterday the New Zealand government decided to do something radical about barely affordable housing: ban most foreigners from buying homes. From now on only nationals, foreigners who have residency, and Australian and Singaporean nationals can buy. Though foreigners own only 3 per cent of all property, this rises to 5 per cent in Queenstown (favoured by the mega-rich as boltholes in case all things go pear-shaped) and 22 per cent in central Auckland, AP reports.
DAX 30
A second large red Marabuzo candle on a second consecutive week has increased the bearishness of the MACD. Now re-testing June’s low and the rough neckline area of the huge potential head& shoulders that’s been building since February 2017. A weekly close below 12000 should add downside momentum until month-end. A recent Deloitte study found that German auto-makers stood to lose €12.4 billion with a no-deal Brexit.
SHORT TERM TRADER: Short at 12635; stop above 12930. Target 12200.
POSITION TAKER: Might go short on Friday’s close.
FTSE 100
Another large red Marabuzo candle reflecting a change of tone in Europe. Amazingly it managed to settle exactly on Fibonacci 38 per cent retracement support. A weekly close below here would add significantly to the increasingly bearish technical tone.
SHORT TERM TRADER: Took profits at 7500 and will re-sell on a weekly close below here.
POSITION TAKER: Small short at 7799; stop well above 7800. First target 7400, then 7100. Will add to this position on a weekly close clearly below 7500.
S&P 500
Yesterday’s odd-shaped candle (mix of bearish engulfing and hanging man) has seen an increase in the bearish MACD.
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
Another day, another dip, as FX and bond traders are sent reeling.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
EURO/US DOLLAR
Yesterday’s tiny little hammer candle hints that the euro continues to try to stop the euro’s decline that took hold mid-April. This corrective move lower is mature and the single currency, like many others, is very oversold. Let’s see if and when President trump starts talking currency wars.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
I think someone’s got a little carried away this morning. This is basically the 10th consecutive weekly decline and it might be time to take a breather.
SHORT TERM TRADER: Took decent profits at 1160; now wondering where to re-sell.
POSITION TAKER: Short at 1242; stop above 1220. Target 1140.
