Talking today at the Credit Suisse Asian Investment Conference in Hong Kong, Eric Rosengren, president of the Federal Reserve Bank of Boston said he thought low global bond yields were ‘’in part pushing down yields in the United States as well’’ and that if the American economy grows at his expected 2-2.5 per cent and if inflation picks up, then yields ‘’will go up a little from where it is now’’. At the same event, ex-Fed chair Janet Yellen thought the inversion of the US Treasury yield curve did not signal a recession ahead but might instead signal that the Fed might have to start cutting its target rate.
In the media this morning, Rachel Reeves, chair of the Business, Energy and Industrial Strategy committee, pointed to the ‘exorbitant’ pay of FTSE 100 CEOs which has increased four times as much as average national earnings over the last decade. Their report released today offers many recommendations.
DAX 30
Momentum turned bearish on Friday’s fairly sharp sell-off and yesterday’s price action has done nothing to change that.
SHORT TERM TRADER: Short at 11450; stop well above 11625. First target 10860.
POSITION TAKER: Short at 11550; stop above 11825. Target 10600.
FTSE 100
Friday’s sell-off, the biggest this year, has sorted the overbought situation.
SHORT TERM TRADER: Short at 7190; stop above 7370. Target 6830.
POSITION TAKER: Short at 7190; stop above 7370. First target 6600.
S&P 500
No salient technical features on this chart, but at least the market is no longer overbought.
SHORT TERM TRADER: Short at 2800; stop above 2865. Target 2600.
POSITION TAKER: Short at 2800; stop above 2900. Target 2550.
BRITISH POUND/US DOLLAR
Consolidating in some sort of triangle with tiny amounts of bullish momentum.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
EURO/US DOLLAR
Such a mess.
SHORT TERM TRADER: Square.
POSITION TAKER: Square.
GOLD
Endless, and painful, creep higher.
SHORT TERM TRADER: Square.
POSITION TAKER: Stopped myself out at a tiny profit.
