Early August this year and Tesla CEO Elon Musk Tweeted that he was planning to take the company back into private hands, the share price would be $420 (some suggest a marijuana culture reference to amuse his girlfriend), and that funding was secured (from the Saudi Arabian Public Investment Fund, he says). The SEC says these were false and misleading statements, that he hadn’t any funding and nor did he have investor support. They want him banned from running a public company and be subject to substantial civil penalties.
Yesterday the Italian government agreed to a sharp increase in public spending, aiming for a budget deficit of 2.4 per cent; this must be sent to Brussels for approval by mid-October. This year’s budget deficit should be 1.6 per cent and an original 0.8 per cent was planned for 2019. Finance minister Giovanni Tria had also targeted for something smaller.
DAX 30
The recent drift lower is intact with the trend line capping again yesterday and the Commodity Channel Index turning imperceptibly lower.
SHORT TERM TRADER: Short at 12330; stop above 12460. First target 11900.
POSITION TAKER: Square.
FTSE 100
Retracing over half of the most recent decline as the Tory Party Conference starts in Birmingham on Sunday.
SHORT TERM TRADER: Square.
POSITION TAKER: Short at an average above 7300; stop above 7535. Target 6925.
S&P 500
Getting rather messy allowing for the 50-day moving average to catch up with price action.
SHORT TERM TRADER: Square
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Bullish momentum disappeared and a rather worrying irregular evening star pattern has developed over the last 3 days.
SHORT TERM TRADER: Long at 1.3105; stop below 1.3050. Target 1.3300.
POSITION TAKER: Long at 1.3110; stop below 1.3000. Target 1.3600, maybe more.
EURO/US DOLLAR
Bullish momentum gone as we suffer another sizeable retreat from increasingly important resistance around 1.1800.
SHORT TERM TRADER: Long at 1.1780; stop below 1.1600. Target 1.2000.
POSITION TAKER: Square.
GOLD
Dropping to the bottom of its recent comfort zone increasing bearish momentum.
SHORT TERM TRADER: Will go short on a close below 1180 today.
POSITION TAKER: Short at 1194; stop above 1215. First target 1160.
