Washington summoned Silicon Valley moguls to testify in Congress, Google notable by its absence. COO Sandberg of Facebook and CEO Dorsey of Twitter were quizzed about dealing with election meddling on social media; Ms Sandberg said her company had shut down 1.27 billion fake accounts between October 2017 and March 2018. Twitter shares shed 6 per cent, as did Netflix’s, Snap fell 4 per cent and the NASDAQ index closed 1.2 per cent lower.
The Financial Times reports this morning that Goldman Sachs will no longer be working on the mandate to auction £109 billion of investment contracts owned currently by Lloyds Banking Group, and previously managed by Aberdeen Standard Life. This is because Goldman’s retail arm Marcus has started accepting UK deposits in direct competition to Britain’s third largest bank.
DAX 30
The rumours were correct and Germany’s second largest commercial bank, Commerzbank, has been removed from this DAX index, to be replaced by Wirecard; sign of the times. This hasn’t helped the index one iota, with momentum increasingly bearish and a daily close below the first important chart level at 12000. Remember that key secular support lies between 12000 and 11600; the closer we get, the faster the moves will probably become.
SHORT TERM TRADER: Square and now looking to re-sell on a weak weekly close.
POSITION TAKER: Square.
FTSE 100
Bearish momentum is building with a daily close below 7400 and below the bottom of the broad trend channel; both likely to accelerating the move lower.
SHORT TERM TRADER: Short at 7455; stop above 7555; First target 7300.
POSITION TAKER: Short with an original target at 7100; stop above 7535.
S&P 500
Slipping in a three-step move from the record high which has turned the MACD bearish surprisingly quickly.
SHORT TERM TRADER: Square
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Bloomberg yesterday suggesting that Germany might be prepared to do a Brexit fudge with Britain kept the MACD bullish, though we remain under trend line resistance. An interim low just under 1.2800 might be in place based on yesterday’s big candle.
SHORT TERM TRADER: Small long at 1.2925; stop below 1.2780. Target 1.3275.
POSITION TAKER: Square.
EURO/US DOLLAR
Bouncing quite smartly again from the bottom of the old triangle pattern, keeping the MACD bullish. Today we have redrawn the top of the triangle to take in the interim highs.
SHORT TERM TRADER: Square.
POSITION TAKER: Long at 1.1595; stop below 1.1530. Target 1.1785.
GOLD
Next they’ll be talking safe-haven status, but the reality is that platinum and silver charts look very bearish.
SHORT TERM TRADER: Short at 1195; stop above 1220. First target 1160.
POSITION TAKER: Square.
