China’s Association of Automobile Manufacturers announced this morning that vehicle sales fell by 15.8 per cent in January from this period last year with 2.37 million cars sold. This is the seventh consecutive monthly decline with drops of 13 per cent in December and 14 per cent in November. However, sales of what they call ‘new energy vehicles’ rose to 95,700.
The Financial Times reports that EU-based financial derivatives traders have been given permission to continue to clear contracts through British clearing houses. The European Securities and Markets Association has approved LCH, ICE Clear Europe and LME Clear as they deem UK market rules as being of an equivalent standard to those of the European Union. The move would kick in on the 30th March 2017 – in the event of a no-deal Brexit – and run for 12 months.
DAX 30
Holding just under 11400 for a fifth consecutive week with zero momentum.
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
Momentum turned bullish last week as the market retraces half of the losses in the second half of 2018. Now back in the middle of the broadening top formation with 7 in 8 of the last weeks being a bullish candle.
SHORT TERM TRADER: Stopped out of my short position at last.
POSITION TAKER: Square.
S&P 500
Holidays in Canada and the United States today and lots of British children on half term. Barely any bullish momentum despite 8 consecutive weekly rallies and back to levels we were at this time last year. We’ve also almost retraced a Fibonacci 76.4 per cent of Q4’s slump. Remember the Rule of 8-10.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Clinging to what little bullish momentum there is with a hammer candle last week.
SHORT TERM TRADER: Square but tempted to re-buy.
POSITION TAKER: Square.
EURO/US DOLLAR
Clinging to last year’s low with a tiny hammer and a barely visible MACD.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Like the S&P 500, gold has also retraced a Fibonacci 76.4 per cent of last year’s decline, stalling in the area which capped at this time last year. We’ll see.
SHORT TERM TRADER: Small short at 1317; stop above 1328. Target 1240.
POSITION TAKER: Square.
