Data compiled by IHS Markit showed that spending on Visa credit cards fell for a second consecutive month in November, an annualised decline of 0.7 per cent after October’s 0.2 per cent fall; consumer spending has dropped in 7 of 2018’s 11 months so far. Not exactly news, I’m sure you’ll agree, other than the fact things are getting worse, not better.
More interesting perhaps is today’s Reuters report that accountants Moore Stephens have calculated that 1219 restaurants went into liquidation in the year to September, up 24 per cent on 2017. Head of restructuring and insolvency at the firm, Jeremy Willmont said, ‘’closures in the restaurant sector are at epidemic levels now’’. City AM reports this morning that industry expert Paul Newman of accounting firm RSM believes that ‘the relative health of eating and drinking out is a better indicator of where the future of the high-street lies’. Ah!
DAX 30
Last week’s attempt at a bounce has barely dented the oversold weekly situation, looks rather like a irregular shooting star, and is clearly under first Fibonacci retracement resistance.
SHORT TERM TRADER: Small short at 12215; stop above 11000. Target 10585.
POSITION TAKER: Small short at 11000; stop above 11200. Target 10500.
FTSE 100
The weekly RSI scraping along in oversold territory since October and no respite. Last week’s attempt at a bounce ended with an irregular shooting star candle clearly below first Fibonacci retracement resistance. I worry what might happen in thin markets this week as we are so close to the bottom of a massive, important broadening top chart pattern.
SHORT TERM TRADER: Square.
POSITION TAKER: Short at 6770; stop well above 6900. Target 6200.
S&P 500
US investors are all too aware that indices are trading perilously close to lows set earlier in the year. Note that bearish momentum is currently much stronger than it has been in the last two years.
SHORT TERM TRADER: Still square.
POSITION TAKER: Still square and might remain so until January.
BRITISH POUND/US DOLLAR
Oversold and perched close to the lowest levels of the last two years. Brexit negotiations taking their toll as tempers start fraying.
SHORT TERM TRADER: Long at 1.2650; stop below 1.2475. Target 1.2875
POSITION TAKER: Square.
EURO/US DOLLAR
Just under the half-way mark of the range of the last two years and momentum is still bearish, as it’s been since April.
SHORT TERM TRADER: Long at 1.1395; stop below 1.1260. Target 1.1600.
POSITION TAKER: Square.
GOLD
Possibly working in a massive inverted flag formation; then again, possibly I’m clutching at straws.
SHORT TERM TRADER: Short at 1238; stop above 1255. Target 1212.
POSITION TAKER: Square.
