Data published overnight in Japan showed that imports into Japan in January fell by 0.6 per cent, while exports slumped by 8.4 per cent; this compares to an increase of 8.2 per cent in November. The trade balance stood at a deficit of 1.415 billion yen, one of the worst on record; for a country that became famous for its exporting prowess, the change is significant. Post WWII the trade balance held roughly at zero until the 1970s. A strong surplus in the trade of goods was maintained between 1980 and 2008, when the great financial crisis saw them plummet through to 2014 when it saw a record deficit of 2.795 billion yen. Recovering to a shrivelled surplus in 2015, things took a turn for the worse since July last year.
China’s Global Times newspaper, run by the Communist Party, has an op-ed this week which states: ‘[if] the US imposes more tariffs on Chinese products while China responds with fiercer countermeasures, it would be a catastrophic strike to global stock markets’. Britain’s Guardian has said that former New Zealand PM Jenny Shipley has denied writing this piece.
DAX 30
Still no momentum in this index with a little doji yesterday denoting indecision.
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
Not so overbought as we settle yesterday just below the psychological 7200.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
S&P 500
Still overbought with a painful little doji yesterday after Monday’s holiday.
SHORT TERM TRADER: Short at 2775; stop a bit above 2820. Target 2600.
POSITION TAKER: Square.
BRITISH POUND/US DOLLAR
Momentum’s turned bullish after yesterday’s decent rally.
SHORT TERM TRADER: Long at 1.2920; stop below 1.2890. Target 1.3150.
POSITION TAKER: Square.
EURO/US DOLLAR
Scraping itself up off last year’s lows rather unsteadily and momentum might just turn bullish today.
SHORT TERM TRADER: Long at 1.1305; stop below 1.1260. Target 1.1480.
POSITION TAKER: Square.
GOLD
A decent rally yesterday has put the market into overbought territory.
SHORT TERM TRADER: Stopped out of my short position for a tiny loss.
POSITION TAKER: Square.
