Data out this morning show that home loans in Australia slumped by 6.1 per cent in December following a 0.9 per cent decline in the previous month. Not only was the drop far bigger than anyone predicted but on a quarterly basis is one of the biggest falls since the series began in 1975. Data of this magnitude was last seen during the 2008-2009 financial crisis and confirms that sentiment, even for a country that last saw a recession in 1991, can shift extremely quickly and on a whim.
Today in Madrid 12 Catalan separatist politicians go on trial following November 2017’s failed attempt at independence. They face a variety of charges including rebellion and sedition which carry jail sentences of up to 25 years. Some have already spent over a year incarcerated waiting trial and the leader, Carles Puigdemont remains in Belgium on self-imposed exile. The trial will focus minds on a contentious issue that splits Spain.
DAX 30
Backing up towards the very old trend line but momentum remains bearish.
SHORT TERM TRADER: Small short at 11180; stop above 11400. First target 10600.
POSITION TAKER: Short at 10955; stop above 11400. Target 9350.
FTSE 100
Consolidating at the higher levels of the last 3 months and almost overbought again.
SHORT TERM TRADER: Small short at 7115; stop above 7215. Target 6745.
POSITION TAKER: Square.
S&P 500
Almost overbought again as investors constantly search for good news stories, be they related to trade wars, President Trump’s policies or whatever.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
The sort of retreat we’ve seen so many times before as Brexit manoeuvres continue and we remain largely in the dark. The commodity channel index is in a position to perhaps signal a buy soon.
SHORT TERM TRADER: Small long at 1.2935; stop below 1.2825. Target 1.3200.
POSITION TAKER: Square.
EURO/US DOLLAR
The commodity channel index might be signalling a new long position soon.
SHORT TERM TRADER: Small long at 1.1335; stop a bit below 1.1285. Target 1.1500.
POSITION TAKER: Square.
GOLD
No longer overbought as we consolidate under 1320.
SHORT TERM TRADER: Small short at 1317; stop above 1328. Target 1240.
POSITION TAKER: Square.
