In an interview, yesterday with the Washington Post Donald Trump said, ‘’so far, I’m not even a little bit happy with my selection of Jay [Powell]. Not even a little bit. I’m doing deals and I’m not being accommodated by the Fed. They’re making a mistake [raising rates] because I have a gut and my gut tells me more sometimes than anybody else’s brain can ever tell me’’. He has blamed recent stock market declines on the Fed and now GM’s decision to close 5 factories. He also threatened to cut all subsidies for GM, including for electric cars.
Yesterday the Financial Conduct Authority revealed that IT failures in the 12 months to October have increased by 138 per cent, while cyber-attacks are up 18 per cent, City AM reports. Head of wholesale and specialist supervision Megan Butler commented: ‘’all the trends we’re seeing…suggest an increasing threat to UK customers and financial markets’’. She also noted that persistent underreporting is a problem in the industry.
DAX 30
Yesterday’s small doji, denoting instability, was capped by the trend line since 2012, which should now act as resistance; momentum remains just bearish. The Wall Street Journal reports that Deutsche Bank is mulling over yet another shake-up at the very top of the pecking order, letting go of two people responsible for coordinating with regulators.
SHORT TERM TRADER: Short at 11200; stop above 11425. Target 10400.
POSITION TAKER: Short; stop above 11600. Next target at 10700.
FTSE 100
Another index forming a little doji yesterday and zero momentum. Note that today in the UK we have a barrage of banking and Brexit-related reports, stats and guesstimates being published. Why would anyone read or listen to half this stuff?
SHORT TERM TRADER: Short at 7080; stop above 7120. First target 6865.
POSITION TAKER: Square.
S&P 500
Bouncing from secular trend line support, retracing a Fibonacci 23 per cent of October’s losses, and momentum is no longer bearish. Note that bank analysts have started churning out their macro predictions for 2019 and, surprise, surprise, many are quietly bullish for global equities.
SHORT TERM TRADER: Square.
POSITION TAKER: Short at 2630; stop above 2745. Target 2535.
BRITISH POUND/US DOLLAR
Still keeping an eye out for signs cable is attempting to base.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
EURO/US DOLLAR
Another currency feeling rather sorry for itself. Watching for glimmers of basing.
SHORT TERM TRADER: Stopped out of my long position for a tiny loss.
POSITION TAKER: Stopped out here too on the dip below 1.1300.
GOLD
Drooping again towards trend line support with the MACD potentially turning bearish today.
SHORT TERM TRADER: Tiny short at 1220; stop above 1230. Target 1200.
POSITION TAKER: Square.
