Originally a broker-dealer, Merrill Lynch, Pierce, Fenner & Smith was rescued by Bank of America at the height of the financial crisis on the 14th September 2008. Yesterday the bank’s CEO Brian Moynihan said in an interview, ‘’we are continuing to unify the company, continuing down the road we started on a decade ago’’. The bank reverts to just Bank of America, the wealth management arm will be rebranded just Merrill. Perhaps they think that bit of the name has less toxic connotations.
Unexpectedly, and abruptly, Iran’s foreign minister Javad Zarif resigned – via an Instagram post - yesterday. Tricky, as also on Monday President Bashar al-Assad of Syria flew into Tehran to meet senior political figures of the Islamic Republic. Syria’s main ally in the civil war, Ayatollah Ali Khamenei said he is ‘proud’ of the help they have given Assad.
DAX 30
The MACD is a mess as we match early December’s high.
SHORT TERM TRADER: Looking for signs that this year’s corrective bounce has ended.
POSITION TAKER: Square.
FTSE 100
Clearly back below the psychological 7200 and momentum looks set to turn bearish.
SHORT TERM TRADER: New small short at 7120; stop above 7275. Target 6800.
POSITION TAKER: Square.
S&P 500
A tiny shooting star yesterday following last week’s series of ridiculously small daily ranges. This is not a healthy market and it is still overbought. At yesterday’s latest Treasury auction both 2-year and 5-year paper shaved 10 basis points off the previous auction result. President Trump meets North Korea’s Kim Jong Un in Hanoi tomorrow.
SHORT TERM TRADER: Short at 2775; stop a bit above 2820. Target 2600.
POSITION TAKER: New short at 2795; stop above 2875. Target 2600.
BRITISH POUND/US DOLLAR
Despite the usual Brexit stuff cable has seen bullish momentum increase and we’ve met our target just under the top of the broadening base pattern that’s been forming since June.
SHORT TERM TRADER: Took profits at 1.3150 as planned and will now watch for a weekly close above trend line resistance before re-buying.
POSITION TAKER: Square.
EURO/US DOLLAR
Sadly lacking bullish momentum.
SHORT TERM TRADER: Long at 1.1305; stop below 1.1300. Target 1.1480.
POSITION TAKER: Square.
GOLD
No longer overbought as we consolidate under this year’s high.
SHORT TERM TRADER: Short at 1326; stop above 1350. First target 1300.
POSITION TAKER: Short at 1328; stop above 1350. Target 1255.
