Data this morning shows Nationwide Building Society house prices were flat between September and October, taking the annualised rise to a mere 1.6 per cent, the lowest since May 2013. Later today the Bank of England releases its Quarterly Inflation Report and is more than likely to keep the Bank Rate unchanged at half of one per cent.
US troop numbers to be deployed at the Mexican border are ballooning. Last week it was suggested that 1,000 army personnel would be mobilised. By Monday 5,000 were to be sent there. Yesterday President Trump called for 15,000 to be on hand to meet the Central American human caravans aiming for the United States.
DAX 30
Ending October below horizontal support and the neckline of a massive head & shoulders top that has been in the making since the beginning of 2017. Still holding above trendline support taken from the interim 2011 low. Note that results from new Eurozone bank stress tests are due soon.
SHORT TERM TRADER: Short at 11200; stop above 11755. Target 10400.
POSITION TAKER: Short; stop above 11700. Next target at 10700.
FTSE 100
Once again managing to end the month just above horizontal support at 7100 and inside the broadening top formation, and above trend line support since 2012.
SHORT TERM TRADER: Short at 7025; stop above 7155 (moved stop up yesterday as rally was so feeble). Target 6400.
POSITION TAKER: Short at 7075; stop moved up to 7155 yesterday. First target 6800.
S&P 500
Holding above horizontal support at 2600 again in October with a potential, irregular double top at the record high.
SHORT TERM TRADER: Square and looking to re-sell.
POSITION TAKER: Square and reviewing the situation.
BRITISH POUND/US DOLLAR
In a historical context, this morning’s rally from this year’s low looks spectacularly unimpressive. Just another Brexit day in Britain. Rumours swirling that Mrs May has cobbled a deal on trade in services with the EU and that Dominic Raab will have a Brexit deal with the EU by November 21st.
SHORT TERM TRADER: New small long at 1.2900; stop below 1.2700. Target 1.3100.
POSITION TAKER: Square.
EURO/US DOLLAR
Another currency rallying a bit this morning against the US dollar where, in the bigger scheme of things, looks like nothing at all.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
A bitter disappointment to so many for years on end.
SHORT TERM TRADER: Tiny short at 1227; stop above 1240. Target 1190.
POSITION TAKER: Square.
