Data out this morning showed that Australian GDP rose by 0,.3 per cent Q/Q (half of consensus estimates), from 0.9 per cent growth in Q2 2018, taking the annualised rate down to 2.8 per cent in Q3 from 3.1 per cent in the previous quarter. CNBC blames this on tepid wage growth which has meant people are less willing to spend. They believe that this news will not be welcome by the Reserve Bank of Australian nor by the ruling centre-right government which is lagging in the polls ahead of a probable election in May.
Today is a national US holiday in memory of ex-President George Bush senior who’s funeral is today and will be attended by President Trump and his wife; financial markets are closed, explaining in part yesterday’s steep losses on Wall Street. The Jewish festival of Chanukah continues until the 9th December; a Menorah Lighting Ceremony takes place at 17:30 today in Trafalgar Square, London
DAX 30
A comprehensive rejection from immediate trend line resistance and the support line taken from 2011’s interim low yesterday, following Monday’s spike high, confirms that we have in place a new interim high.
SHORT TERM TRADER: New small short at 12215; stop above 11570. Target 11050 and then 10570.
POSITION TAKER: Short; stop above 11600. Next target at 10700.
FTSE 100
Retesting the lower edge of the range of the last month, consolidating close to this year’s lows.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
S&P 500
The Fibonacci 61 per cent retracement level at 2813 is obviously an important resistance level. Keep in mind that US markets are shut today so let’s see how creative the spread-betting fraternity can be with their price feeds.
SHORT TERM TRADER: Short at 2778; stop well above 2820. Target 2620.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
A large dragonfly doji is not bad going for PM May’s defeats in the House of Commons yesterday. It has, though, prevented the commodity channel index from turning higher and confirming a buy signal.
SHORT TERM TRADER: Stopped out of my little long, unsurprisingly.
POSITION TAKER: Square.
EURO/US DOLLAR
Looking for direction as we remain stuck around the 1.1355 area.
SHORT TERM TRADER: Long at 1.1395; stop below 1.1260. Target 1.1600.
POSITION TAKER: Square.
GOLD
Back up at October’s high and not overbought. Note that this quarter palladium has rallied very considerably and is now trading at new record highs.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
