CNBC reports that in a written statement the Chicago Mercantile Exchange noted: ‘our equity index futures markets [were] paused intermittently following this evening’s open due to volatility, which triggered more than 40 Velocity Logic events in the first six minutes of trading.’ Speculation as to why the volume was so large – Nomura Securities believes it was 36,700 contracts in the S&P 500 futures in the first 10 minutes – was blamed on a large fund of funds liquidating a position.
Some 32 million O2 mobile phone customers in the UK saw their services cut off for the best part of 24 hours yesterday; Softbank customers in Japan also suffered a roughly 4-hour outage, as did other UK providers who use 02’s platform. The fault is said to lie with Ericsson’s hardware which both companies use. Rather frighteningly, the sector is dominated by giants Ericsson, Huawei, and Nokia. The gig economy went into meltdown as customers couldn’t use the apps that they depend on.
DAX 30
This week has been dominated by a concerted sell-off from what has now become trendline resistance from the interim low is 2011. A weekly close below the psychological 11000 should also add to bearish pressure. Note that Deutsche Bank shares hit yet another record low yesterday as reports suggest they shifter four-fifths of the Danske money laundered.
SHORT TERM TRADER: Small short at 12215; stop above 11400. Target 10570.
POSITION TAKER: Short; stop above 11400. Next target at 10700.
FTSE 100
So far, we’ve seen the biggest weekly drop in this index in almost 3 years. Roughly drawn trendline support, taken from the interim low in 2011, has held. We’ve still got to get through today and the Brexit vote due Tuesday.
SHORT TERM TRADER: Short at 6870; stop above 7000. First target 6650.
POSITION TAKER: Will sell on a weekly close below 6800.
S&P 500
Massive hammer candle as we thrash around between two trendlines, resistance provided by the one from 2016’s low, support from the recent lows. I know which is the more important of the two.
SHORT TERM TRADER: Covered my position at exactly 2620 pocketing some rather welcome cash.
POSITION TAKER: Will sell on a weekly close below 2600.
BRITISH POUND/US DOLLAR
FX mercifully unaffected by disgruntled shareholders and scared stockbrokers. Please don’t blame everything on Brexit.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
EURO/US DOLLAR
The French are bracing for more, possibly even bigger protests, organised by the Gilets Jaunes on Saturday. President Macron’s approval rating has dropped to a new low below 20 per cent despite scrapping the fuel tax increase and it would appear the French intelligence services have no idea who are the key figures of the most violent protest in decades.
SHORT TERM TRADER: Long at 1.1395; stop below 1.1260. Target 1.1600.
POSITION TAKER: Square.
GOLD
Holding fairly comfortably just under the mid-point of this year’s range. City AM reports this morning that Deputy governor of the Bank of England will today meet Venezuelan finance minister Simon Zerpa and head of their central bank (who was never ratified by congress) Calixto Ortega Sanchez because they want to repatriate to Caracas the last 14 tonnes of the 99 tonnes it held on their behalf in 2011.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
