Data out this morning show that during the month of November German factory orders dropped by a bigger-than-expected one per cent, dragging the annualised rate to a 4.3 per cent decline; October’s figures were also saw downward revisions. Data has been collected since 1952 and monthly figures have averaged a 0.36 per cent increase; the record a 27.1 per cent rise in June 1975 and the worst, a fall of 15.7 per cent in July 1975. Today’s fall, the biggest annual drop in several years, was caused mainly by shrinking demand from other EU countries.
Today in Southwark Crown Court four of Barclays’ most senior former bankers will appear on charges relating to Qatari money received in 2008. Ex-CEO John Varley, ex-senior executive Roger Jenkins, Richard Boath and Tom Kalaris are alleged to have arranged the cash injection to avoid a UK government bailout. The first two are also suspected of having lent $3 billion to the Qataris to buy shares in their bank.
DAX 30
Bare minimum bounce last week with the market capped at first Fibonacci retracement resistance and well under the neckline of the massive head & shoulders top.
SHORT TERM TRADER: Short at 10445; stop above 11000. Target 9300.
POSITION TAKER: Square.
FTSE 100
Holding and closing above the bottom of the massive broadening top chart pattern for a second consecutive week underlines the importance of this chart area. The BBC reports this morning that the UK PM will hold the Brexit deal vote on January 15th.
SHORT TERM TRADER: Stopped out of my short position on Friday’s rally.
POSITION TAKER: Short at 6770; stop well above 6900. Target 6200.
S&P 500
No longer oversold as we retrace a Fibonacci 38 per cent of Q4’s collapse. Friday’s comments by Fed governor Powell at an economic conference were a worrying sign as to how the US central bank is being run.
SHORT TERM TRADER: Short at 2500; stop well above 2625. Target 2200.
POSITION TAKER: Short at 2485; stop above 2625. Target 2075.
BRITISH POUND/US DOLLAR
No longer oversold as we form a massive hammer-like doji weekly candle underlining the fact cable’s trading close to its weakest levels in years.
SHORT TERM TRADER: Long at 1.2660; stop below 1.2475. Target 1.2900.
POSITION TAKER: Square.
EURO/US DOLLAR
Bearish momentum easing as the euro pushes up against trend line resistance.
SHORT TERM TRADER: Long at 1.1415; stop below 1.1300. Target 1.1515.
POSITION TAKER: Square.
GOLD
Small signs of instability with a weekly shooting star candle at an area that has capped several times over the last 3 years.
SHORT TERM TRADER: New short at 1292; stop well above 1300. First target 1240.
POSITION TAKER: Square.
