Donald Trump had already said he wasn’t attending the World Economic Forum meeting in Davos next week because of the partial government shutdown. Now his spokesperson said, ‘’out of consideration for the 800,000 great American workers not receiving pay and to ensure his team can assist as needed, President Trump has cancelled his Delegation’s trip’’. He’s also told Democrat House Speaker Nancy Pelosi that her trip to Brussels and the Middle East has been postponed – unless she chooses to fly commercial.
The reporting season for investment banks is following a pattern. Profits at their fixed income, currency and commodity (FICC) trading arms took a hit in Q4 2018. Drops of between 10 and 30 per cent were recorded at Citi, JP Morgan, Morgan Stanley, BNP Paribas and Société Générale – which may close its proprietary trading desks in London and Paris.
DAX 30
Still holding just under 38 per cent Fibonacci retracement resistance and the old trend line.
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
Retreating slowly from the Fibonacci 38 per cent retracement resistance level and the commodity channel index has clearly turned down.
SHORT TERM TRADER: Short at 6905; stop above 7045. First target 6600.
POSITION TAKER: Short at 6895; stop above 7045. First target 6600.
S&P 500
Relentless little steps higher.
SHORT TERM TRADER: Stopped out of short on the latest little squeeze higher.
POSITION TAKER: Stopped out here too, oh dear.
BRITISH POUND/US DOLLAR
Strongest bullish momentum in a while as obvious positioning spots the line of least resistance: Too many too short for too long.
SHORT TERM TRADER: Tiny long at 1.2870; stop below 1.2800. Target 1.3200.
POSITION TAKER: Square.
EURO/US DOLLAR
A bit of a mess really as we cling to the old trend line.
SHORT TERM TRADER: Long at 1.1510; stop below 1.1345. Target 1.1750.
POSITION TAKER: Square.
GOLD
Worse than watching paint dry – and no bullish momentum.
SHORT TERM TRADER: Short at 1292; stop well above 1300. First target 1240.
POSITION TAKER: Square.
