The annual meeting of the world’s (supposedly) most important nations has not got off to a good start, expectations constantly being managed downwards. German Chancellor Angela Merkel will arrive late because her government Airbus A340 plane was forced to turn around and land in Cologne one hour after take-off due to a technical fault. She and her finance minister, Olaf Scholz, will leave Germany today on a commercial flight. In Buenos Aires, the final of football’s Copa Libertadores between arch-rivals River Plate an Boca Juniors had to be postponed due to an attack on the team’s bus; it will take place in Real Madrid’s stadium on December 9th.
The German Treasury plans draft law changes to allow UK-based firms to provide cross-border financial services in Germany until 2020; they said it was to ensure the ‘functioning or stability’ of financial markets after Brexit. Just as well, because yesterday 170 police and tax officials raided 6 Deutsche Bank offices in Frankfurt, part of an investigation linked to the Panama papers.
DAX 30
Last day of November and advent calendars at the ready. Traditional German Christmas markets will go into full swing and hopefully markets will take a back-seat. The Dax continues to consolidate feebly at this year’s lower levels.
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 consolidating in a tight range close to this year’s low. In fact, a lot of asset classes have this year seen negative returns. A bad year all round. The FT reports today that discounts of £350,000 are being secured in London’s most exclusive neighbourhoods.
SHORT TERM TRADER: Short at 7080; stop above 7120. First target 6865.
POSITION TAKER: Square.
S&P 500
A little doji bang on trend line resistance might mark the centre of an evening star 3-candle combination if we get a decent down-day today. This would then mark another intermediate high.
SHORT TERM TRADER: Plan to sell on a close below 2685 today.
POSITION TAKER: Short at 2630; stop above 2755. Target 2535.
BRITISH POUND/US DOLLAR
Also stuck at this year’s lower levels.
SHORT TERM TRADER: Small long at 1.2830; stop below 1.2695. Target 1.3150.
POSITION TAKER: Square.
EURO/US DOLLAR
Holding up marginally better than cable and at August’s low.
SHORT TERM TRADER: New little long at 1.1395; stop below 1.1260. Target 1.1600.
POSITION TAKER: Square.
GOLD
Once again stalling at 1230, but moves are so tiny they are really irrelevant.
SHORT TERM TRADER: Tiny short at 1220; stop above 1230. Target 1200.
POSITION TAKER: Square.
