As Japanese Prime Minister Shinzo Abe was yesterday telling UK members of parliament to back Theresa May’s deal on leaving the EU, because the world didn’t want a no-deal Brexit, data published in Japan this morning was downbeat. Household spending skidded to -0.6 per cent, from a peak of +2.8 per cent in October. The trade deficit increased in November from 321 billion to 559 billion yen. And the economy watchers’ surveys both dropped below 50: Current conditions to 48 from 51 and the outlook to 48.5 from 52.2 (lowest since April 2017).
The impasse between President Trump and the Democrats, which has led to the shutdown swathes of US federal government, has dragged on for 3 weeks – the longest this has ever happened. Yesterday Mr Trump threatened to declare a state of emergency to get around the issue of building the wall on the Mexican border, which is at the heart of the stalemate. He’s also cancelled his trip to Davos this year.
DAX 30
Still hovering under the trend line from 2009’s low and just ahead of Fibonacci 38 per cent retracement resistance. The CCI is yet to turn down.
SHORT TERM TRADER: Short at 10445; stop above 11050. Target 9300.
POSITION TAKER: Short at 10745; stop well above 11050. First target 10200 and probably 9250.
FTSE 100
Creeping up to the psychological 7000 level – just above where the index peaked in December 1999.
SHORT TERM TRADER: Short at 6905; stop above 7040. First target 6600.
POSITION TAKER: Stopped myself out at a loss late yesterday.
S&P 500
Going nowhere.
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
Capped yet again despite the MACD being steadily bullish.
SHORT TERM TRADER: Long at 1.2660; stop below 1.2600. Target 1.2900.
POSITION TAKER: Square.
EURO/US DOLLAR
Consolidating above the trend line and above 1.1500, which had been resistance for months.
SHORT TERM TRADER: New long on yesterday’s close at 1.1510 as I feel we’ll get a close above the trend line today; stop below 1.1350. Target 1.1750.
POSITION TAKER: Square.
GOLD
Holding all too comfortably above the top of the trend channel though bullish momentum is fading.
SHORT TERM TRADER: Short at 1292; stop well above 1300. First target 1240.
POSITION TAKER: Square.
