Many moons ago ‘the market’ had pencilled in another small rate hike by the Fed at today’s FOMC meeting. After Q4’s US stock market sudden slump, the tone has changed dramatically and no change in the current target range is expected. As for the subsequent press conference, commentators suggest he will ‘tiptoe’ through it carefully so as not to rock the boat.
This morning City AM reports that R3, the UK’s insolvency and restructuring trade body, showed an increase in insolvencies in 2018. People in England and Wales resorted to this method for dealing with debt with 115,299 cases last year (highest in 7 years), a surge in Q4 to 34,108 – a 34 per cent increase on Q3. President of the practice Stuart Frith noted, ‘’as banks and other lenders have tightened their credit standards in response to the Bank of England’s concerns around consumer over-indebtedness, many people have run out of road’’. Company insolvencies are the highest in 4 years at 16,090.
DAX 30
The commodity channel index is still trying to turn down; third time lucky?
SHORT TERM TRADER: New small short at 11180; stop above 11400. First target 10600.
POSITION TAKER: Square.
FTSE 100
Bouncing on the Brexit merry-go-round.
SHORT TERM TRADER: Short at 6905; stop above 7005. First target 6600.
POSITION TAKER: Short at 6895; stop above 7045. First target 6600, and then probably an awful lot more.
S&P 500
Labouring around the 50 per cent retracement level.
SHORT TERM TRADER: Short at 2666; stop well above 2700. First target 2450.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
The MACD has been steadily bullish since mid-December despite the constant chatter and speculation. Enough, I say!
SHORT TERM TRADER: Square.
POSITION TAKER: Long at 1.2860; stop below 1.3000. Target 1.3250.
EURO/US DOLLAR
As Sino-US trade talks lumber up again, Europeans are starting to worry that President Trump will have them in the crosshairs to deflect from issues with the former.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Overbought again as the latest rally looks as though it might have legs.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
