Echoes of Versailles, as an estimated 10,000 gilets jaunes returned to the Arc de Triomphe this weekend, smashing, looting and burning commercial property; the President called a crisis meeting ‘’so this doesn’t happen again’’. Over at the Gare du Nord passengers queued for up to 5 hours to board a seriously reduced Eurostar train service; the company urging passengers not to travel until Wednesday, and only if ‘absolutely necessary’, offering full refunds; customs staff are striking over pay and conditions. Reuters reports today that the French champagne makers’ trade group CIVC says that in 2018, for the first time in a century, more bottles were exported than sold in France. Sales in both France and the UK, which together account for 60 per cent of consumption, fell for a third consecutive year; they blamed the barely managing middle’s switch to Prosecco.
London home prices fell 1.1 per cent since February taking the Y/Y decline to 3.8 per cent, Rightmove reports overnight; sales volume fell 10 per cent from this time last year. Across the UK prices dropped 0.8 per cent over the last month taking the annual price rise to just 0.4 per cent; contrast with hardest hit Kensington and Chelsea which lost 8.3 per cent over the same period.
DAX 30
The strongest weekly close since the first week of October yet still the commodity channel index is flashing a potential sell signal.
SHORT TERM TRADER: Short at 11600; stop well above 11800. First target 10800.
POSITION TAKER: Square.
FTSE 100
Another index hovering at the half-way retracement area since last year’s high with the commodity channel index flashing warnings. Media today suggesting that yesterday’s letter from PM May in The Telegraph suggesting that those who won’t back her Brexit deal are unpatriotic has backfired.
SHORT TERM TRADER: Stopped out on Friday’s close for a small loss.
POSITION TAKER: Square.
S&P 500
Stalled again at this year’s high.
SHORT TERM TRADER: Short at 2775; stop a bit above 2820. Target 2600.
POSITION TAKER: Short at 2795; stop clearly above 2825. Target 2600.
BRITISH POUND/US DOLLAR
A big Marabuzo and bullish engulfing candle last week, an area we had lift-off early September 2017.
SHORT TERM TRADER: New long on Friday’s close at 1.3290; stop well below 1.3200. Target 1.3600.
POSITION TAKER: Square.
EURO/US DOLLAR
The MACD is barely bullish as the euro scrapes itself of this year’s lows.
SHORT TERM TRADER: Tiny long at 1.1284; stop below 1.1290. Target 1.1460.
POSITION TAKER: Square.
GOLD
Totally tedious as bullish momentum since October dissipates.
SHORT TERM TRADER: Square.
POSITION TAKER: Short at 1328; stop above 1320. Target 1255.
