Data published this morning by China’s National Bureau of Statistics showed that both industrial production and retail sales dipped again last month. The annualised pace of growth in industrial production fell to 5.4 per cent, from 5.9 per cent in October, the slowest since February 2016. Retail sales grew by 8.1 per cent in the year to November, the slowest since 2003 and down from 8.6 per cent in October.
The Financial Times reports this morning that Wall Street banks are trying to quickly offload leveraged loans they hold on their books. As well as slashing the price offered, new loans are being granted on less advantageous terms. Often used to finance private equity buyouts, central banks have been warning of the risks they pose.
DAX 30
No longer oversold after this week’s little bounce which kept clearly under first Fibonacci retracement resistance.
SHORT TERM TRADER: Small short at 12215; stop above 11000. Target 10570.
POSITION TAKER: New small short at 11000; stop above 11200. Target 10500.
FTSE 100
Bearish momentum still steady as the market struggles under triangle consolidation and first Fibonacci retracement resistance.
SHORT TERM TRADER: Square.
POSITION TAKER: Short at 6770; stop well above 6900. Target 6200.
S&P 500
Surprisingly bearish momentum has actually increased after what looks like a feeble attempt at a bounce.
SHORT TERM TRADER: Will re-sell on a daily close below 2600.
POSITION TAKER: Will re-sell on a weekly close below 2600.
BRITISH POUND/US DOLLAR
The commodity channel index has yet to turn up in what has been one of the world’s most hated currencies since 2007, based on the put/call option ratio.
SHORT TERM TRADER: Long at 1.2650; stop below 1.2475. Target 1.2875
POSITION TAKER: Square.
EURO/US DOLLAR
Zero momentum as we push into the apex of triangle consolidation. Yesterday the ECB confirmed what we all knew: it would end its QE programme but would reinvest maturing paper for ‘as long as necessary’. It also tinkered with forecasts for Eurozone economic growth and inflation.
SHORT TERM TRADER: Long at 1.1395; stop below 1.1260. Target 1.1600.
POSITION TAKER: Square.
GOLD
Quite the pig’s ear, though the commodity channel index has turned down.
SHORT TERM TRADER: New short at 1238; stop above 1255. Target 1212.
POSITION TAKER: Square.
